GE Vernova GEV operates across power generation, electrification, grid infrastructure and wind energy, making it capable of supporting virtually every stage of the electricity value chain. GEV is benefiting from a growing gap between rising global demand for gas turbines and limited industry supply, driven by surging electricity consumption and the need for reliable power generation. Limited manufacturing capacity and long lead times are supporting stronger pricing, higher orders and attractive long-term aftermarket and service opportunities. Both stocks belong to the Zacks Alternate Energy - Other industry.

Given this backdrop, it is useful to examine which stock offers the more attractive investment opportunity.

The Case for GEV

Last month, GE Vernova reported mixed results in the second quarter of 2026, missing on the bottom line but surpassing the Zacks Consensus Estimate for revenues. Both top and bottom lines expanded year over year, driven by robust equipment growth in Power and Electrification units. Significant orders and backlog growth, margin expansion and cash generation were witnessed in the June quarter. In the second quarter, GEV witnessed backlog growth of $13 billion sequentially from equipment and services.

The company expects the Power and Electrification units to continue performing well and has raised its 2026 guidance. GE Vernova now expects revenues in the band of $45.5-$46.5 billion, up from $44.5-$45.5 billion. Free cash flow is now expected in the band of $11.5-$12.5 billion, up from $6.5-$7.5 billion. In the Power segment, 18-20% organic revenue growth is now anticipated, up from 16-18%. 

Revenues in the Electrification unit are now expected in the band of $14.5-$15 billion, inclusive of approximately $3.1 billion from Prolec GE, up from $14-$14.5 billion, inclusive of approximately $3 billion from Prolec GE. Driven by demand growth in Electrification, data center orders have reached more than $5 billion year to date, more than double the 2025 number.

GE Vernova's Power and Electrification equipment businesses are expected to be major growth drivers in the coming years, supported by rising global electricity demand, grid modernization and the accelerating adoption of artificial intelligence. Companies like GEV are investing heavily in new gas-fired generation to ensure reliable baseload power while integrating renewable energy, creating sustained demand for its advanced gas turbines and related services.

Moreover, rapid data center expansion and increasing electrification of transportation and industry are placing unprecedented pressure on aging power grids, driving robust demand for the company's Electrification segment. The combination of a multi-year equipment backlog, strong service opportunities from its expanding installed base and favorable long-term investment trends in power infrastructure should support sustained revenue growth, margin expansion and earnings momentum over the next several years.

GEV's earnings have outpaced the Zacks Consensus Estimate in two of the past four quarters (missing the mark on the other occasions). The average beat is 74%.

GE Vernova Inc. Price and EPS Surprise

GE Vernova Inc. price-eps-surprise | GE Vernova Inc. Quote

The Case for FLNC

Earlier in the month, Fluence Energy reported a wider-than-expected loss in the third quarter of fiscal 2026 and revenues also lagged expectations. The company is suffering due to headwinds like battery oversupply fears, periodic execution delays and macroeconomic pressures.

Fluence Energy tweaked its fiscal 2026 guidance. The company now expects that $400 million in project deliveries to be delayed into fiscal 2027 due to production issues at a new international contract manufacturing facility and construction-related delays that affected the completion and start-up of a new U.S. contract manufacturing facility. Revenues are now expected in the band of $2.9-$3.1 billion compared with the prior guided range of $3.2 billion to $3.6 billion.

Adjusted EBITDA is now expected in the range of negative $30 million to $10 million, previously anticipated in the band of $40-$60 million. This reduction reflects the downbeat revenue outlook and an approximately $15 million upfront cost associated with a planned agreement for long-term international battery supply.

However, the rapid build-out of AI data centers is a tailwind for Fluence Energy. AI facilities require highly reliable, flexible power systems capable of handling sudden fluctuations in electricity demand. Battery energy storage systems help stabilize voltage and frequency, reduce peak demand and support uninterrupted operations, making them an increasingly essential component of next-generation AI .

FLNC's earnings have outpaced the Zacks Consensus Estimate in only one of the past four quarters (missing the mark once and matching the other two). The average miss is 114.5%.

Fluence Energy, Inc. Price and EPS Surprise

Fluence Energy, Inc. price-eps-surprise | Fluence Energy, Inc. Quote

YTD Price Comparison Between GEV & FLNC 

Image Source: Zacks Investment Research

FLNC Is More Attractive Than GEV on Valuation Front

FLNC is trading at a forward sales multiple of 0.51X, compared with GEV’s 5.11X. Both companies have a Value Score of F, currently.

Image Source: Zacks Investment Research

End Note

Agreed that Fluence Energy is witnessing these favorable trends in its business. Management noted that accelerating utility demand, industrial electrification and data-center growth have expanded its sales pipeline. The rapid growth of AI data centers is also a tailwind. However, fears related to battery oversupply, project delivery delays, the guidance cut and macroeconomic tensions are weighing on the company, resulting in its poorer price performance compared with GEV.

GE Vernova is benefiting from powerful themes of AI-driven electricity demand and long-term grid modernization. GEV currently carries a Zacks Rank #3 (Hold), while FLNC has a Zacks Rank #5 (Strong Sell).

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

We can safely conclude that GEV is the more compelling contender in this comparison. Consequently, GEV appears better positioned than FLNC at present and emerges as a clear winner in this faceoff.

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 question is whether that resilience is enough. Trade-down pressure, uneven smoke-free results and a valuation above MO’s five-year median keep the case balanced rather than decisively bullish.

Altria Group, Inc. Price, Consensus and EPS Surprise

Altria Group, Inc. price-consensus-eps-surprise-chart | Altria Group, Inc. Quote

Altria’s Pricing Keeps Earnings Resilient

Second-quarter smokeable revenues net of excise taxes rose 2%, while adjusted operating companies income increased 2.4% to $3.02 billion. The adjusted operating companies income margin expanded 30 basis points to 64.8%.

Smokeable price realization was 4.5%, led by Marlboro pricing and partly offset by Basic mix. Pricing helped counter lower shipment volume, promotional spending and higher costs, supporting Altria’s narrowed 2026 adjusted earnings guidance of $5.61-$5.72 per share.

MO’s Discount Mix Tests the Pricing Thesis

Domestic cigarette shipments fell 3.2% in the second quarter and an estimated 4.5% after adjusting for trade inventory movements. Industry discount retail share reached 33.8%, up 2.6 percentage points year over year.

Altria’s discount cigarette shipments jumped 67.3%. Basic helps the company compete for value-sensitive smokers, but a larger discount mix partly offsets premium pricing and leaves the earnings model exposed to continued cigarette category contraction.

Altria’s Smoke-Free Push Offers Mixed Signals

Nicotine pouches represented 59.9% of the oral tobacco category, while on!’s retail share of the overall oral market improved to 8.6%. on! PLUS expanded to about 120,000 stores, and first-half on! shipments increased 5.1%.

Still, Oral Tobacco Products revenues fell 5.3% and adjusted operating companies income declined 8%. on!’s nicotine pouch category share fell 1.7 percentage points to 14.4%, showing that category growth does not guarantee share gains.

Philip Morris International Inc. PM provides a competitive reference point. Its smoke-free business generated 42% of total net revenues in first-half 2026, led by IQOS and ZYN.

British American Tobacco p.l.c. BTI is another relevant peer. Its first-half 2026 New Categories revenues rose 18%, led by Modern Oral and U.S. vapor.

MO’s Valuation Sits Below Benchmarks but Above Its Median

MO trades at 11.6X forward 12-month earnings, below the Zacks sub-industry’s 15.4X, the Zacks Consumer Staples sector’s 17.2X and the S&P 500’s 20.3X.

That discount is not absolute. Altria’s five-year median multiple is 9.7X, so the stock is priced above its own typical valuation even while screening cheaper than broader benchmarks.

Image Source: Zacks Investment Research

Altria’s Cash Returns Strengthen the Hold Case

Altria paid about $3.6 billion in dividends and repurchased $335 million of shares in the first half of 2026. The company also had $665 million remaining under its repurchase authorization at June 30.

The dividend yield is 6.33%, the payout ratio is 76% and debt to EBITDA stands at 1.9 times. Those metrics support the income case, although they do not remove risks tied to falling cigarette volumes, mix pressure and tobacco regulation.

MO’s Mixed Scores Reinforce a Cautious Stance

Pricing power, cash returns and below-benchmark valuation support a measured hold case, but the premium to Altria’s historical median and structural volume pressure limit the argument for aggressive buying.

MO currently carries a Zacks Rank #3 (Hold), with a VGM Score of C, Value Score of C, Growth Score of C and Momentum Score of D. A Zacks Rank #3 can support holding an existing position, while the C scores are middling and the D Momentum Score is less favorable for near-term trading. Stronger buying setups generally pair a Zacks Rank #1 (Strong Buy) or 2 (Buy) with A or B Style Scores. You can see the complete list of today’s Zacks #1 Rank 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 consumer side is showing gains. Sezzle’s AI shopping assistant generated a 3.6 times higher product click rate than the control group and was live for 80% of Sezzle Anywhere users. Management plans to expand the tool to all consumers, tying AI more closely to engagement and shopping activity.

Inside the company, AI is increasingly integrated into daily operations. Sezzle reported that 88% of new code was AI-developed, while 30% of merged code received an added AI review layer. Developer productivity rose 20% quarter over quarter, and 98% of support tickets were automatically graded through its AutoQA process.

These efficiency gains come as Sezzle is growing. In the second quarter of 2026, revenues rose 51.7% year over year to $149.7 million, while adjusted EBITDA reached $58 million with a 38.8% margin. Active subscribers increased 76.4% to 854,000, and average quarterly purchase frequency climbed to a record 7.2 times.

Management is also using AI to speed product development. Sezzle said the upcoming Sezzle Send product was built largely with AI by a small team in weeks rather than months. Sezzle Send already had approximately 100,000 prospective users on its wait list, giving investors another data point to watch, as AI moves from support tools into product creation.

How Are Its Competitors Faring?

Klarna Group plc KLAR is pushing AI beyond customer support and into the core of its payments and shopping operations. The company is using AI to automate service, personalize recommendations, improve marketing and raise employee productivity. Its AI assistant quickly became a major service channel, handling about two-thirds of customer-service chats within its first month.

Affirm AFRM is embedding artificial intelligence across underwriting, servicing, engineering, pricing and merchant promotions, making AI a broader operating tool rather than a standalone feature. Its AdaptAI platform uses real-time data to tailor financing incentives and improve conversion, with early deployments producing nearly a 10% incremental improvement in merchant conversion rates.

SEZL’s Price Performance, Valuation & Estimates

Shares of Sezzle have outperformed in the past three months compared with the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

From a valuation standpoint, Sezzle’s shares have a Value Score of D. In terms of forward 12-month P/E, SEZL stock is trading at 19.1X, which is at a premium to the Zacks Financial Transaction Services Market industry’s 18.85X.

Image Source: Zacks Investment Research

Sezzle’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.24 in the past month. The consensus estimate for the metric indicates a year-over-year increase of 45.96%.

Image Source: Zacks Investment Research

Sezzle 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

Pricing, smokeable margins and cigarette import and export benefits support the earnings path. Cigarette volume declines, weaker oral tobacco results and higher capital spending remain the main offsets.

Altria Group, Inc. Price, Consensus and EPS Surprise

Altria Group, Inc. price-consensus-eps-surprise-chart | Altria Group, Inc. Quote

Altria’s Q2 Miss Still Came With Earnings Growth

Adjusted second-quarter earnings were $1.48 per share, up 2.8% year over year but below the Zacks Consensus Estimate of $1.50. Higher adjusted operating companies income and a lower share count supported the increase.

Net revenues rose 0.1% to $6.11 billion. Revenues net of excise taxes increased 1.2% to $5.356 billion, below the consensus mark of $5.362 billion.

MO’s Narrower Guidance Raises the Earnings Floor

Altria narrowed 2026 adjusted earnings guidance to $5.61-$5.72 per share from $5.56-$5.72. The revision leaves the upper end unchanged while lifting the lower end by 5 cents.

The new range implies 3.5-5.5% growth from adjusted earnings of $5.42 per share in 2025. Management narrowed the range after first-half adjusted earnings increased 4.9% to $2.80 per share.

Altria’s Pricing and Margins Support the Outlook

Smokeable price realization was 4.5% in the second quarter, led by Marlboro pricing and partly offset by Basic mix. Adjusted smokeable operating companies income increased 2.4% to $3.02 billion, while margin expanded 30 basis points to 64.8%.

Management continues to expect a greater benefit from cigarette import and export activity in the second half than in the first half. It expects that benefit to be more balanced between the third and fourth quarters.

MO’s Volume and Cost Pressures Could Limit Progress

Domestic cigarette shipment volume declined 3.2% in the second quarter, or an estimated 4.5% after adjusting for trade inventory movements. Oral Tobacco Products revenues fell 5.3%, while adjusted operating companies income declined 8% as lower volume and higher promotional investment weighed on results.

Capital expenditure expectations increased to $375-$450 million from $300-$375 million. Peer execution also raises the competitive bar. Philip Morris International Inc. PM said smoke-free products generated about 42% of first-half 2026 net revenues, while British American Tobacco p.l.c. BTI reported 18% growth in first-half New Category revenues.

Altria’s Second-Half Estimates Set the Next Test

The Zacks Consensus Estimate calls for third-quarter earnings of $1.50 per share and fourth-quarter earnings of $1.40. The full-year 2026 earnings estimate stands at $5.67 per share.

The consensus sales estimates are $5.33 billion for the third quarter and $5.09 billion for the fourth quarter. Those figures provide the next operating benchmarks as investors assess whether pricing and second-half benefits are offsetting volume and spending pressure.

Image Source: Zacks Investment Research

MO’s Signals Keep the Guidance Reset in Perspective

The narrowed guidance provides a clearer 2026 earnings range, but the operating path still depends on pricing, margin discipline and the timing of second-half benefits. Volume pressure and weaker oral tobacco profitability leave less room for execution slippage.

MO currently carries a Zacks Rank #3 (Hold), a VGM Score of C, Value Score of C, Growth Score of C and Momentum Score of D. The Style Score framework favors A and B grades, particularly alongside Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks, while a Zacks Rank #3 can still support holding an existing position. MO’s C and D scores point to a more mixed near-term setup. You can see the complete list of today’s Zacks #1 Rank 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

UAL’s chief executive officer (CEO), Scott Kirby, was accompanied by CAE's president and chief executive officer, Matthew Bromberg, along with other UAL and CAE leaders, to acknowledge the completion of phase one.

Kirby stated, "United pilots are the best aviators in the world, and the pace at which our team has completed this project is an example of making investments that support our high standard of excellence."

Phase two of the expansion project is set to start next year and is anticipated to be operational by 2030.

UAL’s Flight Training Center Details

UAL’s Flight Training Center is located in the Central Park neighborhood of Denver. The facility is spread across 22 acres (almost 700,000 square feet of training space) and is the only training facility for the airline's nearly 18,000 active pilots and all newly hired pilots.

UAL's flight training center now has eight total buildings and a total of 86 CAE training devices: 52 state-of-the-art full-motion flight simulators and 34 fixed training devices. The center can conduct more than 32,000 training events annually and train up to 860 pilots per day. The facility operates 24 hours a day for 362 days a year.

UAL has started formal site building plans and expects groundbreaking on the next phase of the Flight Training Center expansion to begin on the new land in 2027, with the facility expected to be operational around 2030. The airline plans to supervise the additional Flight Training Center in conjunction with its current facility. 

The Center was originally constructed between 1966 and 1968 as part of the Stapleton Airport complex and has been used as UAL’s main pilot training facility since then. Since 2016, UAL has invested $370 million in the Flight Training Center overall.

UAL’s Expansion in Denver

United Airlines has spent nearly $1 billion in investments since 2021 to boost the customer experience in the region, as Denver is one of its fastest-growing hubs. In 2025, nearly $40 million was spent on hotel room nights in Denver for pilots visiting the training facility, with an expectation to spend nearly $50 million on hotel room nights in 2026.

UAL hired more than 1,400 people in Denver last year and plans to hire more than 1,300 people in 2026.

To Conclude

United Airlines continues to be the popular career destination choice for pilots, given its largest widebody fleet in North America and the global network and hubs across the United States. UAL has hired more than 9,500 pilots since announcing its United Next growth strategy in 2021. In 2026, UAL has hired 700 pilots so far, with plans to hire hundreds more this year.

Given this encouraging backdrop, the expansion seems to be a strategic business step on UAL’s part, reflecting its strength in training pilots.

UAL's Zacks Rank and Stocks to Consider

Presently, UAL carries a Zacks Rank #3 (Hold).

Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. EXPD and Seanergy Maritime Holdings SHIP as well. 

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

EXPD has an expected earnings growth rate of 28.6% for 2026.  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 17.15%.

Seanergy Maritime Holdings currently sports a Zacks Rank #1.

SHIP 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 38%.

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 update shifts attention to durability. Management is raising the earnings and margin view while keeping advertising elevated, but higher second-half raw-material and tariff costs and continued North American weakness could absorb part of the operating gains.

CL's Q2 Beat Sets a Stronger Earnings Base

Base Business earnings were 99 cents per share, up 8% year over year and 4.2% above the Zacks Consensus Estimate of 95 cents. Net sales increased 4.9% to $5.36 billion, edging above the consensus mark of $5.35 billion.

Organic sales advanced 2.4%, with organic volume up 0.8% and pricing contributing 1.6%. Worldwide organic volume improved sequentially for a third consecutive quarter, broadening the growth profile beyond pricing alone.

Colgate's 140-Basis-Point Margin Gain Matters

GAAP and Base Business gross profit margin expanded 140 basis points to 61.5%. Revenue growth management, productivity, pricing and mix supported the improvement, giving Colgate more room to absorb inflation and fund growth initiatives.

Base Business operating profit increased 5% to $1.1 billion, while operating margin edged up 10 basis points to 21.4%. Those gains came despite higher selling, general and administrative expenses and continued brand investment.

CL's Raised 2026 Outlook Signals Confidence

Management now expects mid-single-digit Base Business EPS growth in 2026, up from its prior low- to mid-single-digit view. It also improved both GAAP and Base Business gross profit margin outlooks to roughly flat year over year from down previously.

Image Source: Zacks Investment Research

The top-line framework did not change. Colgate still expects net sales growth of 2-6% and organic sales growth of 1-4%, with the latter including the private-label pet food exit. Execution, rather than a higher sales target, is carrying the profit upgrade.

Colgate Is Still Investing Behind Growth

Advertising spending increased 15% to $777 million from $678 million a year ago. Management expects investment to remain elevated in the second half, with premium, science-led innovation and omnichannel demand generation central to the strategy.

The company is funding growth rather than protecting the new earnings target by cutting brand support. That trade-off matters because raw-material and tariff costs are expected to be higher in the second half than in the second quarter.

CL's Regional Divergence Tests the Upgrade

Latin America delivered 5.3% organic sales growth, Asia Pacific posted 5.2% and Europe, Middle East and Africa rose 2%. North America moved the other way, with organic sales down 3% and organic volume declining 3.9%.

The Procter & Gamble Company PG is a useful comparison because its portfolio includes Crest and Oral-B in oral care and major fabric and home-care brands. The Clorox Company CLX provides another household-staples reference point through its cleaning, household and natural personal-care businesses.

Colgate's Rating Mix Tempers the Event

The second-quarter event improved Colgate's profit setup, but it did not remove the main risks. Margin execution and earnings growth have strengthened, while North America, promotional pressure and higher second-half costs keep the outlook balanced.

CL currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of B, Growth Score of B, Momentum Score of B and Value Score of D. The rank is consistent with a hold posture rather than a top-ranked buy signal, while the Style Scores show favorable growth and momentum characteristics but weaker value. The Style Scores complement the Zacks Rank rather than override it. 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 opportunity is long-dated, but so is the spending requirement. Targa now expects about $5 billion of 2026 net growth capital, raising the execution burden as it expands capacity across an already active system.

Targa Locks In 20 Years of Permian Visibility

Targa’s new fee-based agreements cover gathering, processing, natural gas liquids (NGL) transportation and fractionation across the Permian Delaware and Midland. The contracts broaden its relationship with ExxonMobil, add acreage to an existing Midland area of mutual interest and establish a new Delaware area of mutual interest.

For TRGP, the duration matters because it links planned infrastructure to a large producer customer through 2046. XOM is the producer customer underpinning the new commitments, giving Targa a clearer commercial framework for adding capacity as development advances across both Permian sub-basins.

Image Source: Targa Resources Corp.

TRGP Adds Processing Capacity for Future Volumes

The agreements support three new Delaware processing plants with about 825 million cubic feet per day of combined capacity. Targa is also evaluating as many as five additional plants in the area, which could extend the growth runway beyond the first wave of projects if customer activity warrants further expansion.

That capacity builds on an already growing base. Targa reported total Permian inlet volumes of 7.19 billion cubic feet per day in the second quarter of 2026, up 14% year over year. Western Midstream Partners, LP WES is another Permian-linked midstream operator relevant to this theme. Its Delaware Basin exposure provides a useful comparison as investors assess the balance between processing growth and capital intensity.

Targa’s Integrated Network Could Capture More Value

More gas processing can create additional NGL supply for Targa’s transportation and fractionation assets. Second-quarter NGL transportation and fractionation volumes reached records, while the company’s Train 11 fractionator and Delaware Express NGL Pipeline expansion entered service during the quarter.

The integrated model means the ExxonMobil agreements may influence more than the Gathering and Processing segment. Incremental NGL volumes can move through Targa’s Permian-to-Mont Belvieu system and support utilization of transportation, fractionation and export infrastructure as new capacity comes online.

TRGP’s Higher Capex Raises the Execution Stakes

Targa raised its 2026 net growth-capital outlook to about $5 billion, incorporating expected spending for the three new Delaware plants, incremental associated field capital and the Bull Run II natural gas pipeline. That is above the roughly $4.5 billion outlook maintained when second-quarter results were released.

Image Source: Targa Resources Corp.

The larger program increases exposure to construction timing, cost control and project ramp-ups. Targa is already building multiple processing plants, fractionators, pipelines and export expansions, so delays or slower volume growth could push back expected cash-flow contributions from the broader investment program.

Targa’s Growth Score Fits the Deal’s Long-Term Appeal

The ExxonMobil agreements strengthen Targa’s long-term commercial visibility and add another layer to its Permian growth plan. The stock’s current Zacks Rank #3 (Hold), however, keeps the near-term investment view balanced rather than signaling an outright bullish call.

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

TRGP has a Growth Score of A, consistent with its favorable growth characteristics, but a Value Score of D, Momentum Score of C and VGM Score of C. Style Scores are designed to complement the Zacks Rank, so the combination points to stronger growth attributes than value or momentum characteristics while supporting a measured view of the shares.

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 restraint is valuation. CL still trades above its sub-industry, sector and the broader market, while weakness in North America leaves less room for execution misses.

Colgate's Growth Mix Is Getting Healthier

Second-quarter organic sales rose 2.4%, with organic volume up 0.8% and pricing contributing 1.6%. Worldwide organic volume improved sequentially for a third straight quarter, giving Colgate a more balanced growth mix than one driven mainly by price.

Emerging markets added breadth, with organic sales up 4.8%. Latin America rose 5.3% and Asia Pacific increased 5.2%, while management expects the second half to be somewhat more volume-driven as innovation and brand penetration efforts scale.

CL's Margin Outlook Improves Despite Higher Costs

Gross profit margin expanded 140 basis points year over year to 61.5% in the second quarter. Revenue growth management, productivity, pricing and mix helped absorb higher investment, including a 15% increase in advertising.

Management now expects full-year gross profit margin to be roughly flat year over year, versus a prior expectation for a decline. That upgrade matters because raw-material and tariff costs are still expected to be higher in the second half than in the second quarter.

Colgate's North America Weakness Caps the Upside

North America remains the clearest operating drag. Second-quarter organic sales fell 3% and organic volume declined 3.9% as softer U.S. categories, retailer inventory reductions, heavier competition and some market-share loss pressured results.

Competitive intensity is meaningful. The Procter & Gamble Company PG competes in oral care through brands including Crest and Oral-B, while The Clorox Company CLX has a broad home-care portfolio. Colgate plans selective pricing and promotional actions, but persistent category softness could slow the volume recovery.

CL's Valuation Leaves Less Room for Error

CL trades at 22.47X forward 12-month earnings, above the Zacks sub-industry's 18.38X, the sector's 17.2X and the S&P 500's 20.6X. That premium raises the hurdle for further upside if U.S. demand or cost pressures worsen.

Image Source: Zacks Investment Research

The stock is not at an extreme relative to its own history. Its current multiple sits below the five-year median of 23.5X, with the five-year range spanning 19.4X to 28.8X. The valuation therefore looks elevated versus external benchmarks but less stretched versus Colgate's historical norm.

Colgate's Earnings Revisions Add Support

The Zacks Consensus Estimate for earnings in the current fiscal year has moved higher, with the estimate up 1.3% over four weeks and 1.1% over 12 weeks. Second-quarter Base Business earnings of 99 cents per share also beat the consensus mark of 95 cents by 4.2%.

Projected EPS growth for the current fiscal year is 4.3%. That keeps the valuation-growth trade-off in focus because estimate revisions are favorable, but the expected earnings growth rate remains modest relative to the stock's forward multiple.

CL's Mixed Style Scores Reinforce Patience

The operating picture has improved, but the valuation premium and North American pressure argue for patience rather than treating recent progress as an unqualified buying signal. CL currently carries a Zacks Rank #3 (Hold), consistent with a balanced near-term stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CL has a VGM Score of B, a Growth Score of B and a Momentum Score of B, but a Value Score of D. The B grades are favorable within their respective styles, while the Value Score is a counterweight. Because the Zacks Style Scores complement the Zacks Rank, the mix shows favorable growth and momentum characteristics alongside weaker value characteristics.

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 key test is whether transaction growth and new-shop productivity can support the higher outlook as pricing support moderates.

Dutch Bros Lifts the 2026 Bar

Management raised 2026 revenue guidance to $2.10-$2.13 billion from $2.05-$2.08 billion. Adjusted EBITDA guidance increased to $385-$390 million from $370-$380 million.

Systemwide same-shop sales growth is now expected at 5-6%, narrowed upward from the prior 4-6% range. The changes lift management’s full-year sales and profitability expectations while setting a tighter comparable-sales target.

BROS Q2 Beat Had Broad Support

Second-quarter adjusted earnings of 33 cents per share topped the Zacks Consensus Estimate of 29 cents by 13.8%. Revenues of $550.9 million beat the $524 million consensus mark by 5.1% and increased 32.5% year over year.

Company-operated same-shop sales rose 8.3%, supported by 3.4% transaction growth and a 4.9% increase in ticket. Systemwide same-shop sales advanced 5.8%, giving the raised guidance support from both customer activity and spending.

Traffic Gives Dutch Bros More Quality Behind Guidance

Systemwide transactions increased 1.7% in the quarter, extending transaction gains to eight consecutive quarters. Management expects effective pricing to fall below 1 percentage point in the second half, putting more weight on frequency, food, digital engagement and shop maturation.

Dutch Rewards accounted for 73% of second-quarter transactions, while order-ahead reached about 16% of the mix. Starbucks Corporation SBUX also reported transaction-led momentum, with fiscal third-quarter 2026 global comparable store sales rising 7.9%, including 4.2% transaction growth.

BROS Expansion Adds Upside and Execution Demands

Dutch Bros expects at least 185 system shop openings in 2026 after opening 48 shops in the second quarter. The Phoenix franchise acquisition adds 31 locations, while the agreement for up to 65 Salad and Go sites creates another conversion channel for 2027.

That growth also raises execution demands. Shake Shack Inc. SHAK opened 16 company-operated and 11 licensed Shacks in its second quarter of 2026 while posting 3.5% same-Shack sales growth, providing a peer reference for balancing unit growth with comparable-sales performance.

Margins Remain the Check on Dutch Bros Upside

Coffee and occupancy costs remain the main pressure points. Dutch Bros expects about 60 basis points of deleverage from cost of goods sold and roughly 50 basis points from occupancy in 2026 as higher coffee costs and build-to-suit rents weigh on the model.

Even with higher adjusted EBITDA guidance, its midpoint implies about 20 basis points of year-over-year margin decline. Operating leverage remains a critical test as the company adds shops, expands food and absorbs a faster development cadence.

Dutch Bros Signals Back Growth but Not a Full Green Light

The raised outlook, sustained traffic gains and visible development pipeline support the growth narrative, but cost pressure and execution demands keep the risk-reward balanced. Investors still need evidence that higher traffic and shop productivity can translate into durable margin performance.

BROS currently carries a Zacks Rank #3 (Hold). Its Growth Score of A and Momentum Score of B indicate favorable growth and momentum characteristics, while the Value Score of F points to weaker value characteristics.

The VGM Score of C reflects a more mixed combined profile across value, growth and momentum. With a Hold rank rather than a top-ranked #1 (Strong Buy) or 2 (Buy), the current setup supports patience even as the company’s operating growth remains notable.

You can see the complete list of today’s Zacks #1 Rank 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

Stronger Cost Control Supports Utility Growth

Utilities that control operating costs can improve margins, preserve financial flexibility, fund infrastructure investments and maintain affordable customer rates. Effective cost management also strengthens operations and supports sustainable earnings growth. Alongside PNW, several other utilities also demonstrate strong cost management as highlighted below:

American Electric Power AEP expects up to $16 billion in cost offsets from load growth, helping spread fixed costs while supporting customer affordability and long-term earnings growth. 

PG&E Corporation PCG expects to meet its 2026 target of reducing non-fuel O&M costs by 2-4%, supporting both customer affordability and greater operating efficiency.

The Zacks Rundown on PNW

PNW’s Earnings Estimates

The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 6.53% and an increase of 17.90%, respectively, year over year.

Image Source: Zacks Investment Research

PNW’s Stock Trading at a Premium 

PNW is trading at a premium to the industry, with a forward 12-month price-to-earnings ratio of 18.92X versus the industry average of 15.42X.

Image Source: Zacks Investment Research

PNW’s Stock Price Performance

In the past six months, Pinnacle West Capital’s shares have plunged 2% compared with the industry’s 7.9% fall.

Image Source: Zacks Investment Research

PNW’s Zacks Rank

PNW 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

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 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.

Red Violet, Inc. (RDVT) 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 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).

Here are three of the most important factors that make the stock of this 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 Red Violet is 119.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 21.5% this year, crushing the industry average, which calls for EPS growth of 14.9%.

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 Red Violet is 39.9%, which is higher than many of its peers. In fact, the rate compares to the industry average of 8.3%.

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 62.5% over the past 3-5 years versus the industry average of 15.9%.

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 Red Violet have been revising upward. The Zacks Consensus Estimate for the current year has surged 9.4% over the past month.

Bottom Line

While the overall earnings estimate revisions have made Red Violet a Zacks Rank #2 stock, it has earned itself a Growth Score of A 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 positions Red Violet 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

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end 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.

Our proprietary system currently recommends Celestica (CLS) 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.

Here are three of the most important factors that make the stock of this electronics manufacturing services company 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 Celestica is 43.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 80.2% this year, crushing the industry average, which calls for EPS growth of 55.4%.

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 Celestica is 45.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 10.1%.

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 26.8% over the past 3-5 years versus the industry average of 7.4%.

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.

The current-year earnings estimates for Celestica have been revising upward. The Zacks Consensus Estimate for the current year has surged 6.1% over the past month.

Bottom Line

While the overall earnings estimate revisions have made Celestica a Zacks Rank #1 stock, it has earned itself a Growth Score of A 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 positions Celestica 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 also links agentic technology with stablecoins, identity and biometrics, areas where PayPal believes it can leverage its two-sided network, risk infrastructure and trust among consumers and merchants. PayPal World is already facilitating about $200 million of payment volume between Venmo and PayPal, showing how the company is trying to connect separate parts of its ecosystem.

PayPal is also building momentum in products that could connect with agentic commerce. Venmo total payment volume (TPV) grew 14%, Buy Now, Pay Later (BNPL) volume rose 26% and Pay with Venmo expanded 44%. Braintree TPV continued to grow in the mid-teens, giving PayPal broad exposure across consumer payments and merchants processing as the payments landscape evolves.

The opportunity arrives as PayPal’s core business shows signs of stabilization. The company’s second-quarter 2026 revenues rose 5% to $8.68 billion, while TPV increased 10% to $486.4 billion. Branded checkout volume grew 2% on a currency-neutral basis, giving PayPal a more stable base from which to fund longer-term innovation projects.

PayPal has the financial capacity to support these longer-term investments. The company generated $1.8 billion of adjusted free cash flow in the second quarter and is targeting at least $1.5 billion of gross run-rate savings over two to three years, with much of those savings expected to support strategic growth initiatives.

How Are Other Competitors Faring?

Visa, Inc. V is advancing agentic commerce through Visa Intelligent Commerce, introduced in April 2025. The platform works with AI and technology companies including Anthropic, IBM, Microsoft, OpenAI, Perplexity, Stripe and others, enabling AI agents to search, select and pay securely. In third-quarter fiscal 2026, Visa processed 71.7 billion transactions, up 10% year over year.

Mastercard Inc. MA is pursuing a similar strategy through Mastercard Agent Pay, announced in April 2025. The program uses Mastercard Agentic Tokens and works with Microsoft, IBM, Braintree and Checkout.com to let verified AI agents transact using tokenized credentials. In the second quarter of 2026, Mastercard reported 47.4 billion switched transactions, up 9% year over year.

PYPL’s Price Performance, Valuation & Estimates

Shares of PayPal have gained 40.5% in the past three months compared with the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

From a valuation standpoint, PayPal’s shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 11.03X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 18.85X.

Image Source: Zacks Investment Research

PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.38 in the past week. The consensus estimate for the metric indicates a year-over-year increase of 1.13%.

Image Source: Zacks Investment Research

PayPal 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

That mix makes the investment case less about whether Dutch Bros can grow and more about whether that growth can support the price investors are being asked to pay.

Dutch Bros Growth Case Remains Strong

Management raised 2026 revenue guidance to $2.10-$2.13 billion and adjusted EBITDA guidance to $385-$390 million. Systemwide same-shop sales are expected to increase 5-6%, while the company still plans at least 185 system shop openings this year.

The operating base also remains supportive. Second-quarter revenues increased 32.5% year over year to $550.9 million, while systemwide same-shop sales advanced 5.8% with 1.7% transaction growth. That marked an eighth consecutive quarter of transaction gains, a useful indicator that expansion is not relying only on price.

BROS Has Multiple Transaction Drivers

Dutch Rewards represented 73% of second-quarter transactions, showing the scale of the company’s loyalty program. Order-ahead reached roughly 16% of the mix, giving Dutch Bros another channel to improve convenience and encourage repeat visits.

Food had expanded to about 750 system shops, while Myst Energy Refreshers became a permanent menu item after broadening the company’s energy offering. These initiatives give BROS more ways to drive frequency without depending entirely on menu pricing.

Starbucks Corporation SBUX offers a relevant coffee-shop benchmark. Its fiscal third-quarter 2026 global comparable sales rose 7.9%, led by 4.2% transaction growth. SBUX opened 175 net new stores during the period, reinforcing how traffic and unit growth can work together when execution is effective.

Premium Valuation Leaves Less Room for BROS Error

BROS trades at 3.5X forward 12-month sales versus 3.1X for its sub-industry and carries a forward price-to-earnings multiple of 50.9X. The premium means investors are already paying for a sizable portion of the company’s expected growth.

That raises the importance of sustaining transaction gains, new-shop productivity and earnings growth as pricing support moderates. A premium multiple can remain justified when operating results stay ahead of expectations, but it also leaves less room for execution misses or slower-than-planned margin improvement.

Execution Risks Could Test Dutch Bros Returns

Management expects 2026 capital expenditures of $350-$370 million as Dutch Bros accelerates shop openings, acquisitions and conversions. The scale of that spending increases the need for new locations to mature efficiently and contribute enough sales to offset the capital required to build the network.

Higher coffee costs, greater build-to-suit rent exposure and added food complexity could make that task harder. Restaurant Brands International Inc. QSR, which owns Tim Hortons, provides another useful industry reference. Tim Hortons had delivered 20 consecutive quarters of positive comparable sales through the first quarter of 2026, while RBI continued to target more than 3% comparable sales and over 5% net restaurant growth toward the end of its 2024-2028 algorithm.

BROS Scores Point to Selective Optimism

Dutch Bros still presents a credible growth case, but the valuation and execution demands argue against treating growth alone as sufficient reason to buy. The better setup would be one in which transaction momentum, shop productivity and earnings growth keep pace with the premium embedded in the shares.

BROS currently carries a Zacks Rank #3 (Hold). Its Growth Score of A and Momentum Score of B point to favorable growth and momentum characteristics, while the Value Score of F highlights the valuation challenge.

The VGM Score of C reflects that uneven mix across value, growth and momentum. With the Zacks Rank at #3 and the Style Scores split between favorable growth signals and weak value characteristics, the stock fits a more selective, wait-and-see stance rather than an aggressive buying case.

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

FMX’s Zacks Rank, Valuation & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have lost 2.1% in the past three months, underperforming the industry and the broader Consumer Staples sector’s returns of 5.1% and 1.9%, respectively. The stock also lagged the S&P 500’s growth of 1.2%.

FMX Stock's 3-Month Performance

Image Source: Zacks Investment Research

From a valuation standpoint, FEMSA trades at a forward price-to-earnings ratio of 21.14X, higher than the industry’s average of 19.96X.

Image Source: Zacks Investment Research

Better-Ranked Stocks to Consider

The Vita Coco Company, Inc. COCO is the leading coconut water brand in the United States, leveraging its strong brand equity, expanding global presence and asset-light business model to capitalize on the growing demand for healthier hydration beverages. COCO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Vita Coco’s 2026 sales and earnings suggests growth of 31.6% and 64.7%, respectively, from the year-ago reported figures. The company delivered a trailing four-quarter earnings surprise of 21.9%, on average.

The Coca-Cola Company KO remains a global beverage leader, supported by strong brands, disciplined execution and innovation aimed at sustaining consumer engagement across markets. At present, Coca-Cola carries a Zacks Rank of 2 (Buy).

The consensus estimate for Coca-Cola’s 2026 sales and earnings implies growth of 4% and 9.7%, respectively, from the year-ago reported figures. KO delivered a trailing four-quarter earnings surprise of 4.6%, on average.

The Chefs’ Warehouse, Inc. CHEF is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. At present, CHEF flaunts a Zacks Rank of 1.

The consensus estimate for Chefs’ Warehouse’s 2026 sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter negative earnings surprise of 30.4%, 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

Image Source: Zacks Investment Research

ROST Expands Sales Momentum With Traffic Growth

Ross Stores saw comparable store sales increase 10% year over year in the second quarter of fiscal 2026, primarily driven by higher transaction volume. Management noted strength from new customers, returning lapsed customers and increased engagement from existing shoppers.

The company reported broad-based performance across merchandise categories and geographies. Home and cosmetics were the strongest businesses during the quarter, while the ladies business continued to show solid growth, particularly among younger shoppers.

Ross Stores Improves Merchandise & Store Execution

Ross Stores benefited from stronger merchandise availability and improved vendor relationships. Management highlighted increased access to brands and continued opportunities to expand assortments while maintaining the company’s value-focused positioning.

Inventory at the end of the quarter increased 18% year over year, with packaway inventory representing 36% of the total inventory compared with 38% a year ago. The company said that inventory levels supported higher customer demand while maintaining strong inventory turns and merchandise margins.

ROST Expands Margins Despite Cost Pressures

The gross margin improved 625 basis points (bps), helped by tariff refunds, higher merchandise margins and lower distribution costs. These gains were partially offset by higher buying costs, increased incentives and freight cost pressure from higher fuel prices.

Our model predicted gross profit to increase 14.5% year over year and the gross margin to expand 140 bps to 29% for the fiscal second quarter.

ROST reported the fiscal second-quarter operating income of $1.1 billion compared with $638.3 million in the prior-year period. The operating margin expanded 610 bps, including a 405-bps benefit from tariff refunds. Excluding that benefit, the operating margin improved 205 bps year over year. 

Our model predicted 20.8% year-over-year growth in operating income, with a 130-bps operating margin expansion to 12.8% in the fiscal second quarter.

ROST Strengthens Shareholder Returns & Liquidity

The company ended the fiscal second quarter with cash and cash equivalents of $4.3 billion, and total stockholders’ equity of $6.7 billion. Management emphasized continued investment in growth initiatives, store expansion and customer experience improvements. The operating cash flow reached $1.7 billion for the first half of fiscal 2026.

ROST continued its capital return program in the fiscal second quarter, repurchasing 1.4 million shares for $319 million under its two-year $2.55-billion authorization. The company remains on track to repurchase $1.275 billion of stock in fiscal 2026.

Ross Stores Raises FY26 Outlook

ROST increased its store opening plans for fiscal 2026 to 115 locations, including 90 Ross Dress for Less stores and 25 dd’s DISCOUNTS locations. The company said that the recent store openings in existing and newer markets have performed ahead of expectations.

Management raised its outlook for the back half of fiscal 2026. Comparable store sales are expected to increase 6-7% in the third quarter of fiscal 2026 and 4-5% in the fourth quarter. Third-quarter earnings are projected at $1.75-$1.83 per share, whereas fourth-quarter earnings are expected at $2.17-$2.26 per share.

ROST Maintains Growth Strategy Ahead

Ross Stores expects ongoing initiatives across merchandising, marketing and store operations to support continued sales growth. Management noted that many of these efforts remain in early stages and are being expanded through testing across stores and categories.

The company continues to focus on improving brand relevance, expanding assortments and enhancing the shopping experience. Management believes that these actions can help drive additional market share gains while maintaining the company’s value proposition.

Stocks to consider

We have highlighted three better-ranked stocks, namely, Target Corporation TGT, Dollar Tree Inc. DLTR and Dollar General Corporation DG.

Target offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Target’s current financial-year sales and EPS indicates growth of 4.4% and 11.4%, respectively, from the year-ago reported numbers. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.

Dollar Tree is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. The company currently carries a Zacks Rank of 2. 

The Zacks Consensus Estimate for Dollar Tree’s current financial-year sales and EPS indicates growth of 6.5% and 21.7%, respectively, from the year-ago reported numbers. DLTR delivered a trailing four-quarter earnings surprise of 32.1%, on average.

Dollar General is one of the largest discount retailers in the United States, selling low-priced merchandise, typically $10 or less. The company currently has a Zacks Rank of 2.

The Zacks Consensus Estimate for Dollar General’s current financial-year sales and EPS is expected to rise 3.9% and 7.6%, respectively, from the year-ago reported figures. DG delivered a trailing four-quarter earnings surprise of 21%, 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 transaction also offers scale, cost savings and added research capacity, but those benefits remain contingent on closing. Sublocade accounted for 69% of Indivior’s 2025 revenues, leaving the company heavily exposed to one product.

Indivior’s Merger Adds Scale Beyond Addiction

Indivior currently operates through a single segment focused on addiction treatments. Its 2025 net revenues were $1.2 billion, with Sublocade contributing $856 million and sublingual buprenorphine products generating $351 million.

Combining with Supernus would broaden that mix across psychiatry, neurology and addiction. The planned portfolio of 11 marketed medicines could reduce the concentration risk created by Sublocade, although the benefit will depend on performance after closing.

Indivior Pharmaceuticals Inc. Price and Consensus

Indivior Pharmaceuticals Inc. price-consensus-chart | Indivior Pharmaceuticals Inc. Quote

Indivior Shareholders Keep Majority Ownership

Indivior shareholders are expected to own approximately 56.5% of the combined company, while Supernus shareholders would hold 43.5%. Existing Indivior investors would therefore retain the majority ownership position.

Following completion, the company is expected to be headquartered at Supernus’ existing headquarters and continue trading on Nasdaq under the SUPN ticker. The combined organization is also expected to operate under the Supernus name.

Indivior Targets $125 Million in Annual Synergies

On a pro forma basis, the merged company is expected to generate approximately $2.2 billion in annual revenues and $888 million in adjusted EBITDA. Management also targets $125 million in annual cost synergies.

Those savings add a measurable financial rationale beyond diversification. Indivior raised its standalone 2026 adjusted EBITDA outlook to $700-$740 million after the second quarter, giving the proposed combination another cost-efficiency avenue alongside improving profitability.

Indivior Gains a Broader CNS Pipeline

Indivior’s internal pipeline has narrowed after it decided not to advance INDV-6001 into phase III and halted INDV-2000 following disappointing phase II data. The merger would add Supernus’ broader CNS research capabilities and pipeline programs while supporting additional business development.

Alkermes plc ALKS provides relevant sector context. The neuroscience-focused company markets products for alcohol dependence, opioid dependence, schizophrenia, bipolar I disorder and narcolepsy, showing how a CNS portfolio can extend across addiction, psychiatry and neurology.

Indivior Still Faces Merger Closing Conditions

The deal is expected to close in the fourth quarter of 2026, subject to stockholder and regulatory approvals and customary closing conditions. Until then, the projected diversification, synergies and pipeline expansion remain prospective.

Closing conditions matter because Indivior still depends heavily on Sublocade and faces ongoing litigation exposure related to opioids, antitrust claims and other matters. Those existing risks remain part of the investment case before the combination is completed.

Indivior’s Scores Frame the Deal From Strength

The proposed combination could give Indivior a broader product base, larger revenue scale and access to additional CNS pipeline programs. The central issue for 2026 is execution because the benefits are projected while closing conditions and product concentration remain unresolved.

Indivior currently carries a Zacks Rank #2 (Buy), a VGM Score of A and a Growth Score of A, along with a Value Score of B and Momentum Score of B. A top-two Zacks Rank paired with A- or B-level Style Scores is generally a favorable setup within the Zacks framework. The scores do not guarantee merger success, but they indicate supportive earnings-revision and style characteristics.

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 company continues to invest in production growth from these advantaged upstream assets. In Guyana, ExxonMobil’s fifth FPSO is on track for startup by year-end, while the Longtail development is on the path to reach a final investment decision. New technology deployment and extended-reach development in the Permian Basin are anticipated to enhance well recovery and drive capital efficiency.

XOM’s structural cost savings have reached $16.3 billion since 2019. With the oil price environment remaining favorable for oil and gas producers, XOM is expected to benefit from its focus on production growth. The company intends to deliver approximately $25 billion of earnings growth and $35 billion of cash-flow growth between 2024 and 2030, supported by its advantaged assets, high-value product growth and further cost reductions.

Other Industry Majors With a Low-Cost Production Profile

ConocoPhillips COP and EOG Resources, Inc. EOG are two other energy firms that own low-cost resource bases in the shale basins of the United States, supporting their profitability.

ConocoPhillips is involved in the exploration and production of crude oil, natural gas liquids (NGLs), bitumen and natural gas. The company boasts a strong asset base in the shale basins of the United States, including the Delaware Basin, Midland Basin, Eagle Ford and Bakken shale. These assets support low-cost production, which enables ConocoPhillips to maintain its profitability and generate free cash flow even during periods of low oil prices.

EOG Resources is a leading independent exploration and production company with operations focused on the prolific acres in the United States as well as several resource-rich international basins. EOG boasts a high-return, low-decline asset base and stands out among the low-cost producers in the United States. The company’s focus on maintaining a resilient balance sheet and lowering production costs should enable it to weather oil price volatility.

XOM’s Price Performance, Valuation & Estimates

Shares of XOM have gained 56.8% over the past year compared with the industry’s growth of 50.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.27X. This is above the broader industry average of 5.82X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for XOM’s 2026 earnings hasn’t seen any revisions over the past seven days.

Image Source: Zacks Investment Research

XOM, COP and EOG each currently carry 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

Palomar's premium growth has remained a key earnings catalyst. In the second quarter of 2026, gross written premiums increased 27% year over year to $630.5 million, driven by broad-based momentum across casualty, crop, inland marine and property, and surety and credit. New business production and policy count increased year over year, while premium retention exceeded 96%, supporting sustained earned premium growth.

The company continues to grow premiums through new products, distribution relationships, program partnerships, geographic expansion and rate increases in selected lines. In the second quarter of 2026, net earned premiums surged 59.5% year over year to $287 million, aided by improved excess-of-loss reinsurance terms, greater premium retention, growth in quota-share businesses, such as crop, as well as the Gray Surety acquisition.

Higher premiums are contributing to underwriting income and earnings, although pricing remains critical to profitability. In second-quarter 2026, the adjusted combined ratio increased to 76.7% from 73.1%, while commercial earthquake pricing remains competitive. Still, the larger premium base supported higher underwriting income and earnings.

Overall, Palomar's specialty-market expertise, strong premium growth and disciplined underwriting provide a solid foundation for continued earnings growth. Sustaining this momentum will depend on balancing expansion with adequate pricing and underwriting profitability.

What About Its Peers?

Axis Capital Holdings Limited AXS, a global specialty underwriter, has a strategic focus on specialty products, such as professional liability, cyber, marine and aviation. AXS has been witnessing an increase in its top line over a considerable period of time on the back of higher net premiums, led by its strong Insurance segment. It continues to boost shareholder value through buybacks and dividend hikes.

RLI Corp. RLI, another specialty insurer, benefits from premium growth across its diversified property, casualty and surety businesses. The insurer continues to emphasize disciplined underwriting while pursuing profitable premium growth. It also benefits from investment income generated from its growing invested asset base, providing an additional source of earnings.

PLMR’s Price Performance

Shares of PLMR have gained 12.7% in the past three months compared with the industry’s growth of 4.6%.

Image Source: Zacks Investment Research

PLMR’s Expensive Valuation

The stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 3.48, higher than the industry average of 1.41.

Image Source: Zacks Investment Research

Favorable Estimate Movement for PLMR

The Zacks Consensus Estimate for Palmar’s 2026 earnings per share (EPS) indicates a year-over-year increase of 27.5%. The consensus estimate for revenues is pegged at $1.29 billion, implying a year-over-year improvement of 49.3%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 11.3% and 19.5%, respectively, from the corresponding 2026 estimates.

The Zacks Consensus Estimate for PLMR’s 2026 and 2027 EPS has moved up 2.3% and 2.7%, respectively, in the past 30 days.

Image Source: Zacks Investment Research

PLMR 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

SNDK Faces Tough Competition

Micron Technology is strengthening its enterprise SSD position, creating direct pressure on SNDK. MU said data-center SSD revenues reached roughly $5 billion in the latest quarter and highlighted repeated market-share gains. Micron also highlighted its leadership in QLC NAND and PCIe Gen 6 SSDs, demonstrating its ability to compete aggressively on performance and capacity.

Seagate Technology presents a more indirect challenge. STX argues that enterprises increasingly need tiered architectures combining high-performance memory and SSDs with mass-capacity HDDs to balance performance, energy use and cost. Its HAMR-based Mozaic platform is increasing areal density and enabling more data to be stored per drive while improving capital efficiency, which could keep hybrid NAS systems attractive as customers balance performance, capacity, energy consumption and cost.

SNDK’s Share Price Performance, Valuation & Estimates

Image Source: Zacks Investment Research

Sandisk shares have appreciated 575.7% year to date, outperforming the broader Zacks Computer and Technology sector’s 15.2% growth.

SNDK Stock Performance

Image Source: Zacks Investment Research

The SNDK stock is trading at a discount, with forward 12-month price/earnings of 7.31X compared with the broader sector’s 20.92X. Sandisk Corporation has a Value Score of F.

SNDK’s Valuation

For fiscal 2027, the Zacks Consensus Estimate for Sandisk’s earnings is currently pegged at $213.30 per share, up by 10.62% over the past 30 days, suggesting 200.93% growth from the year-ago estimate.

Sandisk Corporation Price and Consensus

Sandisk Corporation price-consensus-chart | Sandisk Corporation Quote

Sandisk currently has 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

The investment case now hinges on whether durable traffic and unit growth can offset pressure from coffee inflation, occupancy expense and still-elevated valuation multiples.

Why BROS Fundamentals Still Look Resilient

Second-quarter revenues increased 32.5% year over year to $550.9 million. Adjusted earnings rose 26.9% to 33 cents per share and topped the Zacks Consensus Estimate, showing that the company continued to grow earnings even as cost pressures increased.

Systemwide same-shop sales advanced 5.8%, including 1.7% transaction growth. That marked an eighth consecutive quarter of transaction gains, giving BROS an important demand signal as it continues to expand the shop base.

Coffee and Rent Keep Pressure on Dutch Bros Margins

Beverage, food and packaging costs increased 80 basis points year over year to 26.1% of company-operated revenues. Occupancy and other costs rose 50 basis points to 16.3%, reflecting another source of expense pressure as newer shops enter the system.

Shop contribution margin declined to 30.6% from 31.1%. The drop shows that healthy sales growth does not automatically translate into margin expansion when coffee inflation and newer-shop rent absorb part of the operating leverage.

Expansion Gives BROS More Ways to Grow

Dutch Bros opened 48 system shops in the second quarter and continues to target at least 185 openings in 2026. Roughly 90% of the pipeline needed to reach 2,029 shops in 2029 has already been identified, while franchise acquisitions and planned drive-thru conversions provide additional development paths.

Starbucks Corporation SBUX offers a useful industry comparison because its current growth framework also emphasizes comparable-sales growth, coffeehouse expansion and operating leverage. The comparison reinforces why BROS investors will likely watch new-shop productivity and margin conversion as closely as absolute unit growth.

Does the BROS Pullback Create Better Value?

BROS trades at 3.5X forward 12-month sales, below its five-year median of 3.9X but above the sub-industry’s 3.1X. The pullback has therefore made the stock cheaper relative to its own trading history without fully eliminating the peer premium.

Restaurant Brands International Inc. QSR, whose portfolio includes Tim Hortons, provides another relevant quick-service benchmark for coffee-led traffic and store economics. BROS still has to justify its premium through sustained transaction growth, disciplined expansion and better margin performance as cost pressures persist.

BROS Signals Still Favor Patience

The recent decline has improved the valuation setup, but the operating picture remains mixed. Revenue growth, transactions and expansion are constructive, while lower shop contribution margin and higher input and occupancy costs limit the case for a more aggressive stance.

BROS currently carries a Zacks Rank #3 (Hold). Its Growth Score of A and Momentum Score of B point to favorable growth and momentum characteristics, but the Value Score of F remains a clear offset.

The VGM Score of C captures that uneven profile across value, growth and momentum. With a Hold rank and mixed Style Scores, the current signals support a measured approach while investors watch whether unit growth and traffic can translate into stronger margin performance.

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

Encompass Health — with a market cap of $12 billion — offers facility-based patient care through its network of inpatient rehabilitation hospitals. The company has a national footprint that includes 176 hospitals across 39 states and Puerto Rico. Its forward P/E ratio of 18.92X is lower than the industry average of 19.27X.

Courtesy of solid prospects, Encompass Health currently carries a Zacks Rank #2 (Buy) and a Growth Score of B.

Where Do EHC’s Estimates Stand?

The Zacks Consensus Estimate for Encompass Health’s 2026 earnings is pegged at $6.04 per share, indicating a 10.8% year-over-year rise. In the past 30 days, it has witnessed five upward estimate revisions against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $6.5 billion for 2026, implying an 8.8% year-over-year increase.

It beat earnings estimates in each of the past four quarters with an average surprise of 6.8%.

Encompass Health Corporation Price, Consensus and EPS Surprise

Encompass Health Corporation price-consensus-eps-surprise-chart | Encompass Health Corporation Quote

EHC’s Growth Drivers

Encompass Health’s growth is being supported by rising demand for inpatient rehabilitation and a favorable shift toward higher-acuity patients. In the second quarter of 2026, revenues increased 9.6% year over year, driven by 5.6% growth in discharges and a 3.9% increase in net revenue per discharge. Medically complex categories remained strong, with growth in same-store stroke and brain injury volumes. System-wide occupancy also reached 77.4%, up 290 basis points year over year, supporting better utilization of the company’s growing hospital network.

Capacity expansion remains a key part of Encompass Health’s long-term growth strategy. The company opened three hospitals totaling 139 beds during the first half of 2026 and plans to open another five hospitals with 250 beds while adding 100-150 beds to existing facilities during the remainder of the year. Beyond 2026, the development pipeline currently includes 13 hospitals with 606 beds. North Carolina is emerging as an additional growth market following the repeal of its inpatient rehabilitation Certificate of Need law.

Workforce development and care-access initiatives are also supporting Encompass Health’s growth. Its clinical career ladder programs are helping improve staff retention, reduce reliance on premium labor and strengthen its ability to care for higher-acuity patients. The company is also expanding its VA business and testing initiatives such as its admit and appeal program, which could create additional growth opportunities.

The company’s financial stability is reinforced by its strong liquidity position and robust cash flow generation. As of June 30, 2025, Encompass Health held $107.7 million in cash and cash equivalents, up 49.2% from the 2025-end level. Operating cash flows increased 17.2% year over year in 2025 and 6.6% in the first half of 2026.

The company boasts a favorable trailing 12-month return on invested capital of 10.1%, surpassing the industry average of 7.1%. EHC increased its 2026 net operating revenue forecast, now to be in the range of $6.41-$6.49 billion. It also increased its adjusted EPS guidance to be between $6.02 and $6.25.

EHC: Risks to Watch

There are some factors, however, that investors should keep a careful eye on.

The company’s operating expenses escalated over the last several years due to higher salaries and benefits expenses. Total expenses increased 10.8% in 2024 and 8.3% year over year in 2025, along with 8.1% and 9.2% in the first quarter and second quarter of 2026, respectively. The persistent escalation of expenses might weigh on its margin growth.

The company carries a significant long-term debt, net of the current portion, which amounted to $2.6 billion at the end of the second quarter. This leads to a net debt-to-capitalization of 41.4%, higher than the industry average of 37.6%.

Other Stocks to Consider

Some other top-ranked stocks in the Medical space are BrightSpring Health Services, Inc. BTSG, Globus Medical, Inc. GMED and Centene Corporation CNC, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BrightSpring Health Services’ current-year earnings of $1.78 per share has witnessed five upward revisions in the past 30 days against no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 16.1%. The consensus estimate for current-year revenues is pegged at $15.2 billion, suggesting 18.1% year-over-year growth.

The Zacks Consensus Estimate for Globus Medical’s current-year earnings of $4.93 per share has witnessed three upward revisions in the past 30 days, against no movement in the opposite direction. GMED Pharmaceuticals beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%. The consensus estimate for current-year revenues is pegged at $3.2 billion, suggesting 8.8% year-over-year growth.

The Zacks Consensus Estimate for Centene’s current-year earnings of $4.89 per share has witnessed nine upward revisions in the past 30 days, against no movement in the opposite direction. CNC beat earnings estimates in each of the trailing four quarters, with an average surprise of 151.3%. The consensus estimate for current-year revenues is pegged at $196.3 billion, suggesting 0.8% 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

UnitedHealthcare expects 2026 MA enrollment to decline by approximately 1.1 million members, reflecting targeted exits from unprofitable plans. However, Medicare margins are now expected to finish the year above 3%. The improvement reflects tighter benefit design, pricing actions and a more favorable membership mix, while the company expects Medicare medical cost trends to come below the initial estimate of near 10%.

Cost-control initiatives are also becoming an important part of the strategy. Network curation, care management, affordability programs and greater use of value-based care are helping contain medical expenses. Favorable claims experience and a lighter respiratory season have provided additional support. UNH’s consolidated medical care ratio improved to 86.7% in the second quarter from 89.4% a year ago. The company raised its 2026 adjusted EPS outlook to $19.50-$20. For 2027, benefit planning remains centered on current cost trends, with adjustments to benefits and selective market participation aimed at maintaining margin stability.

The strategy could place UnitedHealth on a more sustainable MA growth path, even as near-term enrollment remains under pressure. Improving medical cost trends and a gradual recovery in membership could strengthen the economics of UnitedHealth’s MA business. If these trends persist, UNH could emerge from its current reset with a more profitable MA business and a stronger foundation for long-term growth.

How Are Competitors Faring?

Some of UNH’s major competitors in the medical space are Humana Inc. HUM and Elevance Health, Inc. ELV.

Humana remains heavily exposed to Medicare Advantage, making medical cost control and benefit optimization critical to its outlook. HUM is focusing on pricing, network management and operating efficiencies to restore margins while navigating membership pressure and elevated utilization across its MA portfolio.

Elevance Health is sharpening its Medicare Advantage strategy by prioritizing profitable growth over broad membership gains. Portfolio repositioning, disciplined plan design and a stronger focus on D-SNP and HMO offerings are improving performance, while care management and favorable claims trends support ELV’s path toward at least a 2% operating margin in 2026.

UnitedHealth’s Price Performance, Valuation & Estimates

Shares of UNH have gained 25.2% in the past year compared with the industry’s growth of 21.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 17.96, above the industry average of 15.60. UNH carries a Value Score of B.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.69 per share, implying 20.4% growth from the year-ago period.

Image Source: Zacks Investment Research

UNH stock 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

How WEN Stacks Up Against Key QSR Rivals

Starbucks Corporation SBUX provides a relevant turnaround benchmark for Wendy’s because it is using stronger store execution, menu innovation and loyalty engagement to rebuild transactions. Under its Back to Starbucks strategy, Green Apron Service has improved staffing, operating routines and service consistency, while marketing and beverage innovation are creating more reasons for customers to visit across dayparts. These efforts helped drive U.S. comparable sales growth of 7.9% in the third quarter of fiscal 2026, including a 4.2% increase in transactions, while Starbucks Rewards reached 35.8 million 90-day active U.S. members.

Yum! Brands, Inc. YUM offers another useful comparison through Taco Bell, which continues to combine value, innovation, cultural relevance and digital engagement to drive traffic and market-share gains. Taco Bell delivered 7% same-store sales growth in the second quarter of 2026, outperforming the broader QSR industry for the ninth consecutive quarter. Digital sales mix reached 47%, up 5 percentage points year over year, with more than half of that growth coming from first-party loyalty channels. Its restaurant-level margin also expanded 170 basis points to 26.2%, demonstrating how stronger demand can translate into improved restaurant economics.

Against this backdrop, Wendy’s faces a demanding traffic recovery. Starbucks is already translating improved execution and loyalty engagement into transaction growth, while Taco Bell is using value, innovation and digital capabilities to sustain QSR outperformance.

WEN’s Price Performance, Valuation & Estimates

Shares of Wendy’s have gained 12.5% in the past three months, outperforming the Zacks Retail - Restaurants industry, the broader Retail and Wholesale sector and the S&P 500 index.

WEN Three-Month Price Performance

Image Source: Zacks Investment Research

 From a valuation standpoint, WEN trades at a forward price-to-sales (P/S) multiple of 0.75, below the industry’s average of 3.12.

WEN’s P/S Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

WEN’s earnings estimates for 2026 and 2027 have trended downward in the past 30 days. The revised estimates for 2026 imply year-over-year growth of 2.1%, while 2027 estimates imply a year-over-year decline of 39.8%.

EPS Trend of WEN Stock

Image Source: Zacks Investment Research

WEN’s Zacks Rank

WEN 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 three companies are developing solutions to material and processing challenges that could influence the future of energy and industrial production. Through Halliburton Labs, they will gain access to industry expertise, facilities and a global network of industrial and investment partners aimed at helping hard-technology ventures move toward commercial scale.

Electroflow Targets a Stronger Battery Supply Chain

Electroflow is focused on strengthening domestic battery supply chains by producing lithium iron phosphate (LFP) cathode material directly from lithium brines. LFP is widely used in electric vehicles, grid-scale energy storage and industrial electrification because of its affordability, safety and durability.

Its proprietary technology combines lithium extraction and cathode-material production into a three-step process. The platform is designed to make use of lower-concentration brine resources, support scalable domestic manufacturing and reinforce North America's battery supply chain.

If successfully scaled, this approach could simplify parts of the battery-material production chain while creating additional opportunities to develop domestic lithium resources.

Osmoses Looks to Cut Energy Use in Gas Separation

Osmoses tackles another major industrial challenge: gas separation. The process is important for producing fuels, chemicals and other industrial products but consumes a meaningful amount of energy globally.

The company's membrane platform is designed to reduce the energy consumption, costs and emissions associated with gas-separation processes. Its technology can be used across applications involving renewable natural gas, hydrogen, helium and other industrial gases.

Greater efficiency in gas separation could become increasingly important as industries seek to lower operating costs while improving the environmental performance of energy-intensive processes.

SiTration Focuses on Recovering Metals From Mining Waste

SiTration is developing technology to recover critical metals directly from mining waste streams. Its patented electro-extraction and filtration system can produce market-grade copper through a single-step, electricity-powered process.

The opportunity could be significant. Halliburton Labs notes that mining waste globally contains an estimated $500 billion worth of copper. SiTration's platform is intended to provide a faster and lower-cost route to recovering those resources compared with developing new mines.

The technology is not limited to copper. It can also recover precious metals and produce rare-earth concentrates from different mining streams. SiTration has already demonstrated its technology in pilot projects with Tier 1 mining companies across multiple continents.

Halliburton Labs Pushes Industrial Innovation Toward Scale

The addition of Electroflow, Osmoses and SiTration reinforces Halliburton Labs' broader strategy of helping entrepreneurs turn practical energy and industrial technologies into commercially scalable businesses.

Rather than focusing on a single area, the latest additions span batteries, industrial gases and critical materials — three fields where improving efficiency, supply availability and processing economics could have wide-ranging implications.

Halliburton Labs aims to provide these companies with the expertise, infrastructure and industry relationships needed to scale their technologies and bring them to market.

For Halliburton, the new portfolio companies broaden its exposure to technologies that could help reshape how essential materials are produced, separated and recovered as the energy and industrial sectors continue to evolve.

HAL’s Zacks Rank & Key Picks

Houston, TX-based Halliburton is one of the largest oilfield service providers in the world, offering a variety of equipment, maintenance, and engineering and construction services to the energy, industrial and government sectors. Currently, HAL carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may consider some top-ranked stocks like Delek US Holdings, Inc. DK, Drilling Tools International Corporation DTI and HF Sinclair Corporation DINO, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Brentwood, TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. The Zacks Consensus Estimate for DK’s 2026 earnings indicates 53% year-over-year growth.

Drilling Tools International is a global oilfield services provider focused on supplying downhole tools used in horizontal and directional drilling. The Zacks Consensus Estimate for DTI’s current quarter earnings indicates 200% year-over-year growth.

HF Sinclair is an independent energy company producing and marketing gasoline, diesel, jet fuel, renewable diesel, lubricants and specialty products. The Zacks Consensus Estimate for DINO’s 2026 earnings indicates 134.2% 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

Higher interest rates typically raise borrowing costs across consumer debt, potentially reducing consumers’ purchasing power. With Wall Street already experiencing volatility over the past two months, another rate hike could prolong market uncertainty.

In light of the current uncertainty, it would be wise to consider investing in defensive, low-risk funds such as healthcare. Three such funds are Fidelity Select Health Care FSPHX, Janus Henderson Global Life Sciences D JNGLX and Vanguard Health Care Fund VGHCX.

Fed Signals Potential for Rate Hike

The Federal Reserve maintained its benchmark interest rate at the July Federal Open Market Committee (FOMC) meeting, leaving it in the 3.5-3.75% range. While the decision was widely expected, Fed officials have indicated that rates could be raised if inflation remains persistently high.

Inflation rose significantly in April and May after oil prices surged amid the U.S.-Iran conflict. This prompted some market participants to expect a rate increase in July. However, the central bank kept rates steady after inflation moderated in June and July.

Even with the recent decline, inflation remains well above the Fed’s 2% target. Minutes from the meeting showed that policymakers voted 9-3 to maintain the federal funds rate. The three dissenting members supported a 25-basis-point hike, arguing that a modest hike could help contain inflation now and reduce the need for more aggressive increases later.

The overnight borrowing rate serves as a benchmark for several forms of consumer debt, including mortgages, credit cards and auto loans.

At the same time, geopolitical tensions have intensified again, with neither the United States nor Iran appearing ready to resume negotiations. Earlier this week, the United States said there were no immediate plans for peace talks and that none were currently scheduled.

Oil prices have risen again as concerns grow that the Middle East conflict could persist. A sustained increase in crude prices could put renewed upward pressure on inflation, potentially increasing the likelihood of another Federal Reserve rate hike.

3 Healthcare Funds to Buy

We have selected three healthcare funds that are safe bets during this time of market volatility. Moreover, these funds have encouraging three and five-year returns. The minimum initial investment is within $5000.

We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors in identifying potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.

The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Fidelity Select Health Care fund seeks capital appreciation. FSPHX normally invests 80% of its assets in common stocks of companies principally engaged in the design, manufacture, or sale of products or services used for or in connection with healthcare or medicine.

FSPHX’s 3-year and 5-year annualized returns are 9.4% and 3.8%, respectively. Fidelity Select Health Care fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.62%.

To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

Janus Henderson Global Life Sciences D fund primarily invests in equity securities issued by companies engaged in life sciences orientation.

JNGLX’s 3-year and 5-year annualized returns are 12.9% and 8.4%, respectively. Janus Henderson Global Life Sciences D fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.79%.

To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

Vanguard Health Care Fund invests the majority of its net assets in the common stocks of foreign and domestic companies. These companies are engaged in the development, production, or distribution of products and services related to pharmaceutical and medical supply companies, as well as businesses that operate hospitals and other healthcare facilities.

VGHCX’s 3-year and 5-year annualized returns are 6.7% and 5.1%, respectively. Vanguard Health Care Fund has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.33%.

To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

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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

EPD’s contracted business model makes its earnings less vulnerable to fluctuations in commodity prices. The partnership has also announced major projects worth $6.5 billion under construction, including new gas-processing plants in the Permian Basin, the Bahia pipeline expansion, Fractionator 15 and the Enterprise Hydrocarbons Terminal LPG expansion. These capital projects are expected to benefit from  favorable energy market fundamentals, including increased hydrocarbon production from the Permian Basin higher natural gas demand from rising LNG exports, the expansion of data center infrastructure and increasing industrial demand.

Since many of these projects are expected to enter service during 2026-2028, they should contribute to Enterprise’s earnings, supporting profitability and cash flow growth. EPD's liquidity position and healthy free cash flow generation should enable it to capitalize on growth opportunities while prioritizing returns to unitholders and debt reduction.

Other Midstream Players to Benefit From Rising Energy Demand

Kinder Morgan Inc. KMI is a leading midstream energy company that owns and operates one of the largest energy infrastructure networks in North America, comprising approximately 78,000 miles of pipelines, 136 terminals and more than 700 billion cubic feet of natural gas storage capacity.

The Williams Companies, Inc. WMB is another leading player in the midstream energy sector, which operates a widespread pipeline system of more than 32,000 miles, including the Transco and Northwest Pipeline systems. These pipeline systems are among the largest natural gas transportation networks in the United States.

Rising energy demand in domestic and international markets is expected to support sustained demand for Kinder Morgan and Williams Companies’ midstream services.

EPD’s Price Performance, Valuation & Estimates

Enterprise Products units have jumped 28.3% over the past year compared with the 30.6% improvement of the composite stocks belonging to the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.98X. This is below the broader industry average of 11.27X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for EPD’s 2026 earnings has been revised upward over the past seven days.

Image Source: Zacks Investment Research

EPD, KMI and WMB each currently carry 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 Case for AXTI Stock

AXTI is emerging as a key semiconductor supply-chain beneficiary of AI data-center expansion, particularly through its indium phosphide (InP) wafer substrates used in high-speed optical connectivity. The company does not manufacture chips; instead, it supplies specialty substrates that enable optoelectronic devices where silicon cannot meet performance requirements.

AXTI’s strengths and AI opportunity are evident in its financial performance and customer demand. The second quarter of 2026 marked a major inflection point. Revenues reached a record $47.6 million, up 164% year over year, while InP revenues hit a record $30.7 million, primarily from data-center applications. Importantly, AXT returned to profitability, reporting $11.1 million of GAAP net income, compared with $7 million year over year. AI-driven migration toward 800G and 1.6T optical transceivers, followed by near-packaged and co-packaged optics, provides a potentially durable, multiyear demand opportunity.

AXT's competitive advantages include a high technical barrier to entry, rapidly expanding capacity, improving manufacturing productivity and a vertically integrated raw-material supply chain. Its backlog exceeded $100 million, with coverage extending into 2027. AXT is also advancing 6-inch InP substrates and plans to double InP capacity again in 2027, which could support further growth as customers migrate toward larger, higher-value substrates.

AXT has recently deepened relationships with key optical-component customers supporting AI data-center connectivity. It has secured supply agreements with Casela and Coherent and a long-term capacity reservation agreement with Lumentum. These agreements provide greater revenue visibility, validate strong customer demand and support AXT’s capacity expansion.

Yet, investors should monitor China export permits, U.S.-China trade restrictions, manufacturing execution and the pace at which AXT converts strong demand and capacity investments into sustainable revenue and margins.

The Case for ASYS Stock

Amtech Systems is increasingly establishing itself as a manufacturer of AI semiconductor equipment, and its Thermal Processing Solutions (TPS) business is benefiting from the growing demand for advanced packaging and AI server-board assembly. Its differentiated TrueFlat technology and industry-leading temperature uniformity support high-yield, repeatable processes for increasingly complex AI architectures.

Growth and financial momentum remain encouraging. Its third-quarter fiscal 2026 revenues rose 14.5% year over year to $22.4 million, while TPS revenues jumped 24.9% to $17.7 million. AI-related revenues within TPS increased approximately 120% and accounted for more than 40% of segment sales. TPS bookings surged 73% year over year to $24.3 million, while the segment's book-to-bill ratio reached 1.37, signaling demand ahead of current shipments. Total backlog rose 35% to $28.7 million. Gross margin improved to 50%, GAAP net income reached $1.7 million and adjusted EBITDA was $3.3 million.

The growth opportunity is also broadening beyond advanced packaging. ASYS received its first order for equipment used to produce cooling components for AI semiconductors, potentially expanding its addressable market within AI infrastructure. The company is also developing new equipment platforms for emerging semiconductor applications and higher-density packaging requirements, with new products planned for introduction at SEMICON Taiwan.

The key risk remains the continued weakness in its Semiconductor Fabrication Solutions (SFS) business. SFS revenues declined 13.3% year over year to $4.6 million, primarily because of weak demand for SiC-related products, and management does not expect a meaningful recovery. Meanwhile, reliance on a limited number of customers remains a concern, with two customers accounting for 45% of backlog at June 30, 2026.

AXTI vs. ASYS: Price Performance and Valuation

Over the past year, AXTI shares have soared 2,492.9%, significantly outperforming Amtech Systems’ 142.6% surge. AXT’s strong outperformance reflects growing investor confidence in its exposure to the AI-driven optical networking boom, alongside its aggressive InP capacity expansion and multi-year supply agreements with key industry players.

AXTI vs. ASYS: 1-Year Price Return Performance

Image Source: Zacks Investment Research

Valuation-wise, AXTI is currently trading at a premium, as suggested by the Value Score of F. In terms of the forward 12-month Price/Sales ratio, AXTI shares are trading at 12.99X, higher than ASYS’ 2.2X, although ASYS also carries a premium valuation, reflected in its Value Score D.

AXTI’s stretched valuation is supported by its strong long-term growth prospects, including accelerating AI-driven demand for InP substrates, a supply-constrained market with high technical barriers to entry, aggressive capacity expansion and growing adoption of larger, higher-value wafers. Its vertically integrated raw-material supply chain and improving manufacturing efficiency further strengthen its competitive position.

AXTI Vs. ASYS: Forward 12-Month P/S Ratio

Image Source: Zacks Investment Research

AXT Leads Amtech Systems in Earnings Growth Outlook

AXT appears better positioned than Amtech Systems based on the current earnings outlook. The Zacks Consensus Estimate for AXTI’s 2026 earnings is pegged at 86 cents per share, rising to $2.20 for 2027. Notably, these estimates have surged 218.5% and 209.9%, respectively, over the past 30 days.

Image Source: Zacks Investment Research

By comparison, Amtech Systems’ consensus earnings estimates are lower at 41 cents per share for 2026 and $1.25 for 2027. Over the past 30 days, these estimates have increased 28.1% and 56.3%, respectively, indicating a comparatively more moderate upward revision trend than AXT’s.

Image Source: Zacks Investment Research

Conclusion

AXTI appears better positioned than ASYS right now, supported by stronger AI-driven growth, surging earnings estimates, robust InP demand, expanding capacity and significant customer commitments. ASYS also has promising AI opportunities, but its weaker SFS business and more modest earnings revisions limit its growth profile. Despite its premium valuation, AXTI’s stronger growth momentum makes it the better investment option right now.

Currently, AXTI sports a Zacks Rank #1 (Strong Buy), while ASYS carries a Zacks Rank #2 (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

Growing Customer Base Drives Utility Growth

A steadily expanding customer base creates fresh demand for utility services, supporting revenues and earnings. Along with LNT, other utilities also witness continued customer expansion, as discussed below: 

NextEra Energy’s NEE Florida Power & Light unit added more than 90,000 average customers year over year in the second quarter of 2026, while weather-normalized retail sales rose 0.6%, driven primarily by population growth and supporting continued capital investment and earnings growth.

Xcel Energy XEL reported 0.7% year-over-year growth in both its electric and natural gas customer bases in second-quarter 2026.

The Zacks Rundown on LNT

LNT’s Earnings Estimates

The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 6.52% and 7.21%, respectively.

Image Source: Zacks Investment Research

LNT’s Stock Trading at a Premium 

LNT is trading at a premium to the industry, with a forward 12-month price-to-earnings ratio of 19.36X versus the industry average of 15.42X.

Image Source: Zacks Investment Research

LNT’s Stock Price Performance

In the past six months, the company’s shares have plunged 3.4% compared with the industry’s 7.9% decline.

Image Source: Zacks Investment Research

LNT’s Zacks Rank

LNT 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

While inflation is still elevated, signs of moderation could help restore consumer confidence. The smaller-than-expected increase in prices could also reduce expectations that the Federal Reserve will raise interest rates next month.

Against this backdrop, large-cap growth funds, such as Fidelity Blue Chip Growth K6 FBCGX, Schwab Select Large Cap Growth LGILX and Fidelity Contrafund FCNTX appear to be attractive buys.

Inflation Shows Signs of Cooling

The consumer price index (CPI), a key inflation gauge closely monitored by the Federal Reserve, increased 0.1% sequentially in July, in line with the consensus estimate, according to data from the Bureau of Labor Statistics released on Wednesday. Core CPI, which excludes volatile food and energy prices, climbed 0.2% for the month.

On a year-over-year basis, CPI increased 3.4% in July, down from 3.5% in June. Core CPI rose 2.5% year over year, compared with 2.6% in the previous month. Energy prices declined 1.5% after dropping 5.7% from a month earlier. Both food and shelter costs advanced 0.1%.

The inflation report came just days after data showed an unexpected decline in U.S. employment in July. Inflation had accelerated earlier in the year amid the U.S.-Iran conflict, which pushed oil prices up 10.9% in March.

However, a temporary ceasefire and growing optimism surrounding peace negotiations between the two countries have helped energy prices retreat over the past two months. The Federal Reserve had been expected to raise interest rates by 25 basis points next month in its bid to bring down inflation.

Although inflation remains above the Fed’s 2% target, moderating price pressures combined with unexpectedly weak job growth could encourage the central bank to wait before making another rate move.

Lower borrowing costs would provide consumers with greater spending power, potentially supporting economic growth and benefiting consumer-focused businesses.

3 Large-Cap Growth Funds With Upside

We have selected three large-cap growth funds that are poised to gain from the above factors. Moreover, these funds have encouraging three- and five-year returns. The minimum initial investment is within $5000.

We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors in identifying potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.

The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Fidelity Blue Chip Growth K6 fund invests most of its net assets in common stocks of blue-chip companies, according to Fidelity Management & Research Company LLC. FBCGX advisors generally choose to invest in large or medium market-capitalization companies.

Fidelity Blue Chip Growth K6 fund has a track record of positive total returns for over 10 years. Specifically, FBCGX’s returns over the three- and five-year benchmarks are 24.9% and 13.6%, respectively. FBCGX has an annual expense ratio of 0.45% and a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.

Schwab Select Large Cap Growth fund invests most of its assets in equity securities of large-cap companies. LGILX advisors also invest in foreign equity securities.

Schwab Select Large Cap Growth fund has a track record of positive total returns for over 10 years. Specifically, LGILX returns over the three- and five-year benchmarks are 17.6% and 7.4%, respectively. The annual expense ratio of 0.74% is lower than the category average of 0.74%. LGILX has a Zacks Mutual Fund Rank #2.

To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.

Fidelity Contrafund seeks capital appreciation. FCNTX invests primarily in the common stock of companies whose value management believes is not fully recognized by the public.

Fidelity Contrafund has a track record of positive total returns for over 10 years. Specifically, FCNTX’s returns over the three and five-year benchmarks are 23.6% and 13.5%, respectively. FCNTX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.75%.

To see how this fund performed compared to its category and other #1 or 2 Ranked Mutual Funds, please click here.

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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

Halozyme has collaboration agreements with large pharma companies, which use its ENHANZE technology for the development of SC formulations of their various approved drugs.

Per the agreements, these companies have been granted worldwide license rights to develop and commercialize their products using ENHANZE technology. These deals generate royalties on sales of marketed drugs, milestone payments and annual license fees, which comprise Halozyme’s top line.

Halozyme has several marketed partnered drugs based on the ENHANZE technology, including the SC formulation of J&J’s JNJ Darzalex, argenx’s ARGX Vyvgart Hytrulo and Roche’s Phesgo.

Year to date, shares of Halozyme have rallied 57.7% compared with the industry’s rise of 13.8%.

Image Source: Zacks Investment Research

Halozyme Banks on Higher Royalties

Halozyme’s top line currently comprises product sales, royalty payments, as well as revenues under collaboration agreements related to its ENHANZE technology with some large pharma companies.

The company’s total revenues in the first half of 2026 were primarily driven by higher royalty payments from J&J for SC Darzalex, as well as argenx for Vyvgart Hytrulo.

HALO’s revenues from royalties rose 46.7% year over year to $373.8 million during the first half of 2026.

Halozyme has two commercial proprietary products, Hylenex and Xyosted. Incremental sales from these products also boosted Halozyme’s revenues during the first half of 2026. Total product sales increased 63% year over year to $260.1 million during this period.

Reflecting the strong business performance, Halozyme raised its full-year 2026 financial outlook. The company now expects 2026 revenues of $1.84-$1.91 billion, up from its previous guidance of $1.71-$1.81 billion.

Meanwhile, royalty revenues are now anticipated in the range of $1.22-$1.25 billion compared with the earlier projection of $1.13-$1.17 billion.

Halozyme’s recent business developments and continued growth in royalty revenues from partners are expected to support top-line growth and strengthen its long-term growth outlook. These catalysts could provide further support to the stock’s positive momentum.

HALO's Zacks Rank & Another Key Pick

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

A top-ranked stock in the biotech sector is Repligen RGEN, 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 Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.61 during the same time. RGEN’s shares have gained 10% year to date.

Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%.

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

Keurig Dr Pepper’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have gained 8.7% in the past three months, outperforming both the industry and the broader Consumer Staples sector, which have grown 5.1% and 2%, respectively.

KDP Stock's Past Three-Month Performance

Image Source: Zacks Investment Research

Is KDP a Value Play Stock?

Keurig Dr Pepper currently trades at a forward 12-month P/E ratio of 12.97X, lower than the industry average of 19.95X and the sector average of 17.24X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.

KDP P/E Ratio (Forward 12 Months)

Image Source: Zacks Investment Research

Stocks to Consider

Darling Ingredients Inc. DAR, which is a global developer and producer of sustainable natural ingredients, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Darling Ingredients' current financial-year sales indicates growth of 12.7% from the prior-year level. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

The Coca-Cola Company KO is a leading beverage company with a portfolio of 32 billion-dollar brands spanning sparkling beverages, water, sports drinks, dairy and value-added beverages. KO currently carries a Zacks Rank #2 (Buy).
    
The Zacks Consensus Estimate for Coca-Cola’s current fiscal-year sales and earnings implies growth of 4.03% and 9.7%, respectively, from the year-ago reported figures. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.6%, on average.

Primo Brands Corporation PRMB is a leading North American branded beverage company focused on healthy hydration. It currently has a Zacks Rank #2.

The Zacks Consensus Estimate for Primo Brands’ current fiscal-year sales indicates growth of 2.5% from the prior year’s reported levels. PRMB delivered a trailing four-quarter earnings surprise of 7.7%, 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 upward trend in estimate revisions for this server technology company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Super Micro Computer, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The company is expected to earn $1.06 per share for the current quarter, which represents a year-over-year change of +202.9%.

Over the last 30 days, the Zacks Consensus Estimate for Super Micro has increased 80.61% because five estimates have moved higher compared to no negative revisions.

Current-Year Estimate Revisions

The company is expected to earn $4.43 per share for the full year, which represents a change of +22.0% from the prior-year number.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, seven estimates have moved up for Super Micro versus no negative revisions. This has pushed the consensus estimate 52.18% higher.

Favorable Zacks Rank

Thanks to promising estimate revisions, Super Micro currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

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

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on Super Micro because of its solid estimate revisions, as evident from the stock's 17% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

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

Analysts' growing optimism on the earnings prospects of this drugmaker is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Bausch Health, as there has been strong agreement among the covering analysts in raising estimates.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The earnings estimate of $1.08 per share for the current quarter represents a change of -6.9% from the number reported a year ago.

Over the last 30 days, the Zacks Consensus Estimate for Bausch has increased 5.37% because one estimate has moved higher compared to no negative revisions.

Current-Year Estimate Revisions

For the full year, the earnings estimate of $4.35 per share represents a change of +16.6% from the year-ago number.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, three estimates have moved up for Bausch versus no negative revisions. This has pushed the consensus estimate 7.41% higher.

Favorable Zacks Rank

Thanks to promising estimate revisions, Bausch currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

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

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Bausch shares have added 53% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

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

To address the profitability pressure, the Beyond Efficiency program targets $50 million in run-rate savings by year-end 2026 and $200 million by the end of 2027. The plan includes reducing discretionary operations and technology capacity by 20% and closing existing European digital wallets, which is expected to generate $6 million to $8 million in run-rate savings. 

The company is using AI to automate work and align operations with local markets. For example, APAC agent onboarding is being moved from Lithuania and Costa Rica to Manila, which is expected to reduce unit labor costs while improving cost, quality and speed. Another focus is lowering the cost of moving money. In Colombia, it recently reduced a digital payout cost from more than $2 per transaction to less than $0.50 per transaction, which should boost contribution profit. 

Execution of these steps is key to an earnings turnaround. New agent wins, a better revenue mix and the accelerated Beyond Efficiency program are expected to support stronger results. With full-year 2026 adjusted EPS guidance revised down to $1.25-$1.35, disciplined execution will be critical for WU to stabilize profitability and strengthen its long-term earnings trajectory.

How Are Competitors Faring?

Some of WU’s competitors in the payments space include Euronet Worldwide, Inc. EEFT and Remitly Global, Inc. RELY.

Euronet operates across electronic payments, money transfers and financial services. Its diversified operations include Ria Money Transfer, a global ATM network and electronic point-of-sale processing. EEFT continues to invest in expanding its physical and digital payment infrastructure to support global transaction growth.

Remitly Global focuses on digital financial services, with cross-border remittances as its core business. Operating an asset-light, mobile-first model, RELY continues to expand its digital platform and customer reach while focusing on transaction growth and operating efficiency in the international money-movement market.

Western Union’s Price Performance, Valuation & Estimates

Shares of WU have fallen 16% over the past year compared with the industry’s decline of 14.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, Western Union trades at a forward price-to-earnings ratio of 5.02X, significantly down from the industry average of 18.84X. WU carries a Value Score of A.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Western Union’s 2026 earnings is pegged at $1.29 per share, implying a 26.3% decline from the year-ago period.

Image Source: Zacks Investment Research

WU currently 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

Rising cost of living, elevated inflation and continued geopolitical tensions in the Middle East are weighing on consumer sentiment.

Given this backdrop, investors may consider large-cap value funds, such as Vanguard Equity Income Fund VEIPX, Northern Income Equity NOIEX and Federated Hermes MDT Large Cap Value Svc FSTKX.

Consumer Sentiment Weakens

The University of Michigan's Surveys of Consumers reported last week that its Consumer Sentiment Index declined to 51 in August from 55.2 in July. The reading was also below economists’ forecast of 54.5.

August marked the first decline in consumer sentiment in three months. Meanwhile, consumers’ expectations for inflation over the next 12 months jumped to 4.3% from 4.2% in July. Long-term inflation expectations, measured over five years, remained unchanged at 3.3%.

Concerns about the health of the economy continue to weigh on consumer confidence. Although inflation has moderated over the past two months, it remains well above the Federal Reserve’s 2% target. Oil prices have also pulled back recently after climbing more than 40%, following the outbreak of the Middle East conflict earlier this year.

Despite the recent decline, energy prices remain significantly elevated. At the same time, the conflict between the United States and Iran remains unresolved, with no clear indication that negotiations between the two countries are imminent.

The Federal Reserve kept interest rates unchanged following its July FOMC meeting. While the central bank is expected to deliver a quarter percentage point rate hike this year, the timing remains uncertain. Continued uncertainty could keep markets volatile for an extended period, particularly if consumer confidence remains weak.

3 Best Choices

We've identified three large-cap value mutual funds that have given impressive annualized returns over 3-year and 5-year periods. These funds also hold a Zacks Mutual Fund Rank of #1 (Strong Buy), require an initial investment of no more than $5,000 and have a low expense ratio.

The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Vanguard Equity Income Fund seeks a high level of dividend income and long-term growth of income and capital. VEIPX invests in a diversified group of large and mid-capitalization stocks with above-average dividend yields and reasonable prospects for long-term price appreciation. 

VEIPX’s 3-year and 5-year annualized returns are 15.5% and 11.7%, respectively. Vanguard Equity Income Fund has a Zacks Rank #1 and an annual expense ratio of 0.26%.

To see how this fund performed compared to its category, and other 1 and 2 (Buy) Ranked Mutual Funds, please click here.

Northern Income Equity fund seeks to provide a high level of current income with long-term capital appreciation as a secondary objective. NOIEX’s approach is to identify the securities of companies that generate high current yields and offer prospects for growth and possible capital appreciation.

NOIEX’s 3-year and 5-year annualized returns are 19.9% and 13.5%, respectively. Northern Income Equity fund has a Zacks Rank #1 and an annual expense ratio of 0.48%, which is lower than its category average.

To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

Federated Hermes MDT Large Cap Value Svc fund's investment objective is to provide growth of income and capital. FSTKX pursues its investment objective by investing primarily in equity securities of companies that are generally leaders in their industries, are characterized by sound management and have the ability to finance expected growth.

FSTKX’s 3-year and 5-year annualized returns are 22.5% and 15.2%, respectively. Federated Hermes MDT Large Cap Value Svc fund has a Zacks Rank #2 and an annual expense ratio of 0.99%.

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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

Image Source: Zacks Investment Research

Taking a Quick Look at Estee Lauder's Q4 Results

Adjusted earnings of 39 cents per share beat the Zacks Consensus Estimate of 32 cents in the fiscal fourth quarter. The bottom line increased from 9 cents in the year-ago quarter.

The company's quarterly net sales of $3,627 million beat the Zacks Consensus Estimate of $3,551 million. The top line increased 6% year over year. Organic net sales increased 5% to reach $3,590 million.

Skin Care sales increased 9% year over year to $1,853 million, with organic sales up 7%. Fragrance sales rose 10% to $618 million, with organic sales also up 10%. Makeup sales increased 3% to $1,010 million, while organic sales rose 2%. Hair Care sales slipped 1% to $140 million, with the same decline organically. Other sales fell 5% to $19 million. Among the four core categories, Skin Care, Makeup and Fragrance grew, while Hair Care declined.

The Americas generated net sales of $995 million, up 6% on a reported basis and 5% organically. Asia/Pacific net sales climbed 7% to $970 million and rose 9% organically. Mainland China sales advanced 12% to $824 million, with organic growth of 7%. EUKEM sales increased 3% to $851 million and rose 1% organically. 

Adjusted gross profit increased 12% year over year to $2,750 million. Adjusted gross margin reached 75.5%, up from 72% in the prior-year quarter. Adjusted operating income rose 95% to $267 million from $137 million. 

The company exited the quarter with cash and cash equivalents of $3,498 million, long-term debt of $6,803 million and total equity of $3,806 million. The net cash flow provided for operating activities for the 12 months ended June 30, 2026, was $1,773 million. Capital expenditures during this time amounted to $457 million.

Estee Lauder's FY27 Outlook Points to Further Improvement

For fiscal 2027, Estee Lauder expects organic net sales to rise 3-5%, with growth expected to be stronger in the first half, supported by new product launches, improving travel retail and favorable comparisons. Estee Lauder expects continued rise in Fragrance and Skin Care and a return to growth in Makeup.

Adjusted operating margin is projected at 12.7-13.5%, while adjusted earnings are expected to reach $3.10-$3.35 per share, representing 24-34% growth from fiscal 2026.

The Case for EL Stock

Estee Lauder’s Beauty Reimagined strategy is reshaping how it operates and competes. The One ELC model is helping create a more streamlined organization with fewer layers and silos, clearer roles and greater accountability. The company is also using AI-enabled consumer insights and a unified global media approach to support innovation and improve campaign personalization.

Innovation remains another important pillar of the strategy. Estee Lauder is accelerating launch cycles across Skin Care, Makeup and Fragrance while placing greater emphasis on locally relevant products. In China, the company is increasingly developing products specifically for local consumers through the Shanghai research capabilities, while globally it is supporting hero franchises with new formats, ingredients and product extensions.

The company is also expanding where consumers can discover and purchase its brands. Estee Lauder is increasing exposure to specialty-multi retailers, social commerce and direct-to-consumer platforms while modernizing its digital infrastructure. M·A·C’s expansion into additional channels, its U.S. brand.com launch on Shopify and broader presence on Amazon and TikTok Shop illustrate the company’s push toward a more diversified and consumer-focused distribution model.

Risks to Watch

While these strategic initiatives are strengthening Estee Lauder’s growth platform, execution remains an important risk as it carries out a broad organizational transformation. Estee Lauder is simultaneously modernizing digital platforms, transitioning enterprise-service roles and implementing a unified global media model. Meanwhile, brands such as Bobbi Brown, Too Faced and Aveda continue to face category-specific softness or distribution challenges, keeping the focus on improving brand positioning and channel productivity.

Channel optimization and external uncertainty add another layer of risk. Estee Lauder continues to rationalize underperforming doors while shifting distribution toward specialty retail, social commerce and other growth channels, making execution across channels an area to watch. Tariffs, geopolitical developments and changes in consumer sentiment also remain potential headwinds that could affect demand, costs and the company’s ability to sustain its improving business momentum.

Buy, Sell or Hold the Stock?

Estee Lauder remains well-positioned for further improvement, supported by stronger business momentum, ongoing innovation and broader channel expansion under its Beauty Reimagined strategy. While execution risks, weakness across select brands and external pressures such as tariffs and geopolitical uncertainty remain concerns, the company’s improving operating backdrop supports a balanced outlook.

Given this mix of opportunities and risks, Estee Lauder appears to be a stock worth holding. The company currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Five Below, Inc. FIVE operates as a specialty value retailer in the United States and currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 15.1% and 36.1%, respectively, from the year-ago reported numbers. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.

Dollar Tree Inc. DLTR is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. The company currently carries a Zacks Rank of 2. DLTR delivered a trailing four-quarter earnings surprise of 32.1%, on average.

The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year sales and EPS indicates growth of 6.5% and 21.7%, respectively, from the year-ago reported numbers. 

Dollar General Corporation DG is one of the largest discount retailers in the United States, selling low-priced merchandise, typically $10 or less. The company currently has a Zacks Rank of 2. DG delivered a trailing four-quarter earnings surprise of 21%, on average.

The Zacks Consensus Estimate for Dollar General’s current fiscal-year sales and EPS is expected to rise 3.9% and 7.6%, respectively, from the year-ago reported figures. 

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 Athens route is particularly notable, as Alaska will become the first airline to offer nonstop service between Seattle and Athens and the only carrier to provide a nonstop connection between the West Coast and Greece’s capital. Meanwhile, the Paris route will provide direct access to one of the most in-demand transatlantic markets from the region. The airline also expects the expanded network to support same-day connections between Honolulu and Paris through Seattle, improving international connectivity for travelers from Hawaii.

Both routes will be operated with Boeing 787-9 Dreamliners, featuring Alaska’s new long-haul international experience, including lie-flat Business Class Suites, premium amenities and Starlink Wi-Fi. With Athens and Paris, Alaska’s Seattle intercontinental network will grow to seven destinations, alongside Iceland, London, Rome, Seoul and Tokyo. The airline plans to add at least five more intercontinental destinations by 2030, supported by additional Dreamliners.

The expansion underscores Alaska’s broader strategy of transforming Seattle into a major global gateway and increasing its long-haul international presence. Its oneworld alliance and other global partnerships will further enable passengers to connect to hundreds of destinations across Europe, the Middle East and Asia. This international growth could strengthen Alaska’s competitive position in the Pacific Northwest while giving the carrier greater exposure to growing demand for long-haul leisure and business travel.

ALK’s Share Price Performance

ALK’s shares have declined 32.4% in the past three months compared with the Transportation - Airline industry’s 0.3% fall.

Image Source: Zacks Investment Research

ALK’s Zacks Rank

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

Stocks to Consider

Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. EXPD and Seanergy Maritime Holdings SHIP as well. 

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

EXPD has an expected earnings growth rate of 28.6% for 2026.  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 17.15%.

Seanergy Maritime Holdings currently sports a Zacks Rank #1.

SHIP 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 38%.

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 Fastenal Stacks Up Against Peers

Fastenal competes in a distribution market increasingly shaped by digital tools, inventory automation and operating efficiency. MSC Industrial Direct Co., Inc. MSM and SiteOne Landscape Supply, Inc. SITE are pursuing similar productivity and customer-integration initiatives.

MSC Industrial is expanding its vending and in-plant solutions while improving productivity across its sales organization. In third-quarter fiscal 2026, vending installations increased 7% year over year to about 30,800 machines, while sales through vending rose 15% and represented roughly 20% of company sales. Sales to customers with in-plant programs increased 16% and accounted for about 21% of sales. MSC is also using automation and AI to reduce manual work and support growth without proportionate headcount increases.

SiteOne is also using digital tools and operational initiatives to improve customer engagement and productivity. The company's siteone.com sales increased more than 50% year to date, while regular active users rose about 40%. Management said digitally engaged customers are growing faster than the company average and that the platform helps increase market share while making associates more productive. SiteOne is pairing these digital initiatives with delivery efficiencies, branch optimization and tight SG&A management as it targets further EBITDA margin expansion.

Fastenal’s FMI platform remains a key competitive advantage, supporting customer integration, retention, share gains and greater operating efficiency as adoption expands.

FAST Stock’s Price Performance & Valuation Trend

Shares of this wholesale distributor of industrial and construction supplies have gained 26.2% year to date, outperforming the Zacks Industrial Services industry, the broader Industrial Products sector and the S&P 500 Index.

FAST YTD Share Price Performance

Image Source: Zacks Investment Research

FAST stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 37.84, as shown in the chart below.

FAST P/E Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

Earnings Estimate Revision of FAST

FAST’s earnings estimates for 2026 and 2027 have increased over the past 30 days. The estimated figures for 2026 and 2027 imply year-over-year growth of 12.8% and 15.6%, respectively.

Image Source: Zacks Investment Research

Fastenal currently has 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

Kohl's Corporation Price, Consensus and EPS Surprise

Kohl's Corporation price-consensus-eps-surprise-chart | Kohl's Corporation Quote

Factors Likely to Influence KSS’ Q2 Results

Kohl’s has been navigating a difficult consumer backdrop, particularly among its core middle and lower-income shoppers, who remain pressured by a challenging macroeconomic environment. Discretionary spending remains tight and customers are increasingly value-focused and selective, which is likely to have weighed on overall sales in the quarter under review. 

Category-specific softness is also likely to have weighed on Kohl’s second-quarter performance. Sephora’s mixed performance might have remained a headwind, as the business declined low single digits in the fiscal first quarter, with weakness in makeup and skincare partly offset by strength in fragrance and hair care. Although new products and brands were being introduced and rolled out, their contribution could take time to build, limiting the benefit to sales during the quarter.

Margins are likely to have remained under pressure from Kohl’s emphasis on delivering sharper value and supporting customer engagement through promotions and coupons. Management has noted that investments in value could offset benefits from cleaner inventories and a stronger proprietary-brand mix. Higher digital penetration has also carried incremental shipping costs, while transportation expenses might have added pressure. We expect gross profit to decline 2.1% year over year and gross margin to decrease 40 basis points in the second quarter.

Despite these headwinds, Kohl’s is likely to have benefited from improving execution, proprietary-brand momentum and omnichannel initiatives. The company entered the quarter with cleaner inventories, stronger apparel depth and improved in-stock positioning, while its proprietary brands had been resonating well with value-conscious shoppers. Digital enhancements, including improved product discovery and AI-powered shopping tools, alongside improving trends among Kohl’s Card customers, are also likely to have provided some support.

Earnings Whispers for KSS Stock

Our proven model doesn’t conclusively predict an earnings beat for Kohl's this time. 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, which is not the case here.

Kohl's currently carries a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Burlington Stores, Inc. BURL currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Burlington's upcoming quarter’s earnings per share is pegged at $2.18, which implies 37.1% growth year over year. The consensus estimate for the quarterly revenues is pinned at $3.02 billion, which indicates 11.8% growth from the figure reported in the prior-year quarter. BURL delivered a trailing four-quarter earnings surprise of 14%, on average.

Five Below, Inc. FIVE currently has an Earnings ESP of +20.80% and a Zacks Rank #2. The consensus estimate for quarterly revenues is pegged at $1.21 billion, which indicates an increase of 17.9% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Five Below’s upcoming quarter’s earnings per share is pegged at $1.28, implying 58% year-over-year growth. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.

Costco Wholesale Corporation COST currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $94.46 billion, indicating a 9.6% rise from the figure reported in the prior-year quarter.

The consensus estimate for Costco’s earnings is pegged at $6.51 per share, implying 10.9% growth from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 1%, 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

TAP’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have declined 13.9% in the past six months, underperforming the Zacks Beverages - Soft Drinks industry’s loss of 5.1% and the broader Consumer Staples sector’s fall of 3.4%.

TAP Stock's Six-Month Performance

Image Source: Zacks Investment Research

Is TAP Stock a Value Play?

Molson Coors shares are currently trading at a forward 12-month price-to-earnings (P/E) multiple of 8.67X, at a discount compared with the industry’s average of 14.97X. The stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the beverage segment.

TAP P/E Ratio (Forward 12 Months)

Image Source: Zacks Investment Research

Stocks to Consider

Darling Ingredients Inc. DAR, which is a global developer and producer of sustainable natural ingredients, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Darling Ingredients' current financial-year sales indicates growth of 12.7% from the prior-year level. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

The Coca-Cola Company KO is a leading beverage company with a portfolio of 32 billion-dollar brands spanning sparkling beverages, water, sports drinks, dairy and value-added beverages. KO currently carries a Zacks Rank #2 (Buy).
    
The Zacks Consensus Estimate for Coca-Cola’s current fiscal-year sales and earnings implies growth of 4.03% and 9.7%, respectively, from the year-ago reported figures. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.6%, on average.

Primo Brands Corporation PRMB is a leading North American branded beverage company focused on healthy hydration. It currently has a Zacks Rank #2.

The Zacks Consensus Estimate for Primo Brands’ current fiscal-year sales indicates growth of 2.5% from the prior year’s reported levels. PRMB delivered a trailing four-quarter earnings surprise of 7.7%, 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

Key Factors Likely to Influence HEI’s Q3 Results

In June 2026, HEICO acquired a 90% stake in CalRamic Technologies, a manufacturer of high-voltage ceramic capacitors, and an 80% stake in Cook Defense Systems, a supplier of armored vehicle track systems. The acquisitions are likely to have supported growth by expanding HEICO’s aerospace and defense portfolio, strengthening aftermarket capabilities and adding new revenue opportunities.

Strong sales growth across product lines, led by aftermarket parts and distribution operations, along with contributions from prior acquisitions, is likely to have supported the Flight Support Group unit’s fiscal third-quarter top line.

Healthy sales growth across aerospace, defense and electronics products is likely to have boosted the Electronic Technologies unit’s revenues in the quarter under review.

HEI’s Q3 Expectations

The Zacks Consensus Estimate for HEI’s fiscal third-quarter sales is pegged at $1.34 billion, which indicates an increase of 17% from the prior-year figure.

The consensus estimate for HEI’s fiscal third-quarter earnings is pegged at $1.51 per share, which indicates year-over-year growth of 19.8%.

What the Zacks Model Unveils for HEI

Our proven model predicts an earnings beat for HEICO this time. 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, which is the case here, as you will see below.

Heico Corporation Price and EPS Surprise

Heico Corporation price-eps-surprise | Heico Corporation Quote

Earnings ESP of HEICO: The company’s Earnings ESP is +3.20%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

HEI’s Zacks Rank: Currently, the company has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Defense Releases

TransDigm Group Incorporated TDG reported third-quarter fiscal 2026 adjusted earnings of $10.87 per share, which topped the Zacks Consensus Estimate of $10.29 by 5.6%. The bottom line also improved 13% from the prior-year quarter’s figure of $9.60.

Sales rose 23% to $2.74 billion and beat the consensus estimate of $2.65 billion by 2.6%.

Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.

Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.

Hexcel Corporation HXL reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.

The company’s net sales totaled $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 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

MKC’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have gained 17.6% over the past three months, outperforming the industry, the broader Consumer Staples sector and the S&P 500, which advanced 12.2%, 2.4% and 2.5%, respectively, during the same period.

MKC Stock's Past 3 Months’ Performance

Image Source: Zacks Investment Research

Is MKC a Value Play Stock?

McCormick currently trades at a forward 12-month P/E ratio of 17.06 compared with the industry average of 15.36. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.

MKC P/E Ratio (Forward 12 Months)

Image Source: Zacks Investment Research

Stocks to Consider

Darling Ingredients Inc. DAR develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America and internationally. At present, Darling Ingredients sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 12.8% and 926.5%, respectively, from the year-ago figures. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

The Chefs' Warehouse, Inc. CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.

The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. 

The Vita Coco Company, Inc. COCO develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 21.9%, on average.

The Zacks Consensus Estimate for Vita Coco’s current fiscal-year sales and earnings indicates growth of 31.6% and 64.7%, respectively, from the year-ago reported numbers.

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

OSIS Security Faces Middle East Timing Pressure

Security revenues declined 7.4% year over year to $339.73 million. The decrease reflected delayed Middle East deliveries and a difficult comparison with Mexico program revenues. Management said the fiscal fourth quarter included about a $20 million year-over-year revenue headwind from the Mexico security contracts. 

The underlying service picture was firmer. Excluding prior-year installation revenues tied to Mexico contracts, Security service revenues increased 9% year over year. Management stressed that the delayed Middle East deliveries were deferred rather than cancelled, while related orders remained in backlog with revised schedules.

OSI Systems, Inc. Price, Consensus and EPS Surprise

OSI Systems, Inc. price-consensus-eps-surprise-chart | OSI Systems, Inc. Quote

OSI Systems Adds U.S. Security Awards

Since the end of fiscal 2026 on June 30, 2026, U.S. Customs and Border Protection (CBP) awarded OSIS two five-year IDIQ contracts. One carries a ceiling of about $200 million for relocatable passenger vehicle inspection systems, while the other has an approximately $85 million ceiling for van-mounted mobile X-ray inspection systems. OSIS has already received delivery orders, including a roughly $21 million task order.

Radio-frequency programs also remain an important growth avenue. During fiscal 2026, OSIS secured an undefinitized contract action with a not-to-exceed value of about $235 million for a homeland defense over-the-horizon radar transmit subsystem. Management said customer engagement across the RF portfolio is at its highest level to date.

OSIS Optoelectronics & Healthcare Add Growth

Optoelectronics and Manufacturing revenues rose 4.6% year over year to $117.81 million. Adjusted operating margin improved to 14.7% from 13.6%, aided by scale benefits and a more favorable revenue mix. Management expects the segment to pair revenue growth with further operating-margin expansion in fiscal 2027.

Healthcare revenues increased 4.8% year over year to $44.75 million. Its adjusted operating margin climbed to 10.0% from 0.9% a year earlier, reflecting operating leverage and improvements implemented during the year. The division continues to focus on installed-base expansion and next-generation patient-monitoring products.

OSIS Expands Profitability on Favorable Mix

Gross profit totaled $167.95 million compared with $168.24 million in the prior-year quarter. Gross margin expanded 140 basis points year over year to 34.7%, as a more favorable product sales mix more than offset the prior-year benefit from higher Mexico-related installation service revenues. 

Operating expenses declined 1.2% year over year to $94.07 million. Selling, general and administrative expenses fell 6.6% year over year to $69.75 million, representing 14.4% of revenues, down from 14.8% a year ago. R&D expenses increased to $19.50 million, or 4.0% of revenues, from $18.84 million, or 3.7%, as OSIS continued investing in innovation. 

Non-GAAP operating margin reached 17.7%, up 200 basis points from 15.7% in the prior-year quarter. Security, Optoelectronics and Manufacturing, and Healthcare all posted year-over-year adjusted operating margin improvement, with margins rising 40, 110 and 910 basis points, respectively.

OSIS' Balance Sheet & Cash Flow

As of June 30, 2026, cash and cash equivalents were $359.83 million, up from $345.24 million as of March 31, 2026. 

As of June 30, 2026, the company had about $998.52 million of long-term debt up from $463.50 million a year earlier.

Net cash provided by operating activities increased to $182.11 million in the fourth quarter of fiscal 2026 from $0.56 million in the year-ago period.a 

OSI Systems repurchased 564,880 shares for $123.6 million during the quarter.

OSI Systems Sets Fiscal 2027 Growth Outlook

For fiscal 2027, OSIS expects revenues to be in the range of $1.875 billion to $1.930 billion, implying growth of 5.0% to 8.1%. Adjusted earnings are projected at $11.13 to $11.49 per share, representing growth of 7.5% to 11.0%.

Management expects growth to be strongest in the second half, reflecting conservative assumptions for Middle East deliveries and limited near-term contributions from newer U.S. security awards. OSIS expects strong double-digit growth in service revenues, while larger contributions from recent CBP programs are anticipated in fiscal 2028 and beyond.

OSIS Zacks Rank & Other Stocks to Consider

Currently, OSI Systems carries a Zacks Rank #2 (Buy).
 
NVIDIA NVDA, KLA KLAC and Synopsys SNPS are other stocks worth considering in the broader Zacks Computer and Technology sector, each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 
The long-term earnings growth rates for NVIDIA, KLA and Synopsys are pegged at 104.76%, 15.74% and 17.23%, respectively.
 
Shares of NVIDIA have appreciated 8.5%, while Synopsys and KLA shares have declined 10.7% and 38.4%, respectively.

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 opportunity is meaningful, but so is the execution burden. Investors must weigh potential benefits from scale and automation against higher capital spending, restructuring costs and existing operating pressures.

Year to date, STERIS shares have lost 7% compared with a 6% decline for the industry.

Image Source: Zacks Investment Research

STERIS Commits $600 Million to Chemistry Capacity

The new center will combine manufacturing, research and development, and distribution for formulated chemistries used across Healthcare and Life Sciences. Management said these products generate more than $700 million in revenues and are high-growth, high-margin and highly regulated.

The project will include two facilities totaling 600,000 square feet. STERIS expects a phased opening in two to three years, beginning with distribution, followed by work transfers from existing chemistry sites in St. Louis, MO, and Plymouth, MN.

STERIS Targets Scale Across Two Core Segments

Healthcare represented 71% of fiscal 2025 revenues, while Life Sciences accounted for 10%. First-quarter fiscal 2027 Healthcare revenues rose 7.6% to $1.05 billion, with consumables up 9.2%. Life Sciences revenues increased 8.6% to $146.7 million, led by 17% growth in capital equipment and 8% growth in consumables.

The project also comes amid active investment across medical technology. Edwards Lifesciences EW reported second-quarter 2026 sales growth of 13.6% to $1.74 billion and raised its full-year constant-currency sales growth outlook. Stryker SYK operates across MedSurg, Neurotechnology and Orthopaedics, underscoring the sector's broad competitive landscape.

STE Sees Efficiency and Innovation Upside

Management expects the center to expand capacity, accelerate innovation and optimize STERIS' U.S. chemistries manufacturing and distribution network. Significant automation is planned, which should reduce labor requirements as the operation matures.

The benefits will take time. Management expects the facility to be roughly cost neutral at first, with greater operating leverage emerging as combined volume, automation and scale improve efficiency.

STERIS Sets a Double-Digit ROIC Goal

STERIS expects the project to generate a return on invested capital above 10% within three to five years of opening. That target gives investors a concrete benchmark for judging whether the capital commitment produces sufficient economic returns.

Management expects about $75 million of additional capital spending in fiscal 2027, roughly $350 million in fiscal 2028 and the remaining $175 million in fiscal 2029.

STE Must Manage Spending and Execution Risk

Fiscal 2027 capital expenditures are now expected to be about $450 million, up from the prior $375 million outlook. Free cash flow guidance was reduced to about $800 million from $850 million as higher project spending offsets part of first-quarter cash generation.

STERIS also expects $55 million to $70 million of pretax restructuring charges tied to the consolidation plan. Tariffs, inflation, competition and customer consolidation add pressure, making construction discipline, transition execution and eventual utilization important.

STERIS' Mixed Scores Keep Expectations Grounded

The chemistry project could strengthen STERIS' manufacturing base and recurring consumables franchise if the company delivers the planned capacity, efficiency and return benefits. The long lead time and elevated spending mean the financial payoff will depend on execution over several years.

Image Source: Zacks Investment Research

STERIS currently carries a Zacks Rank #3 (Hold). It also has a Value Score of C, a Growth Score of C, a Momentum Score of C and a VGM Score of C. Zacks Style Scores complement the Zacks Rank, with A or B scores generally preferred alongside Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks. STE's current combination supports a measured stance while investors track the project's progress.

You can see the complete list of today's Zacks #1 Rank 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 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.

As such, the Zacks rating upgrade for PIGEON CORP 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 PIGEON CORP, 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 PIGEON CORP

This company is expected to earn $0.13 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for PIGEON CORP. Over the past three months, the Zacks Consensus Estimate for the company has increased 8.3%.

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 PIGEON CORP 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 Bausch 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 Bausch 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 Bausch

For the fiscal year ending December 2026, this drugmaker is expected to earn $4.35 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Bausch. Over the past three months, the Zacks Consensus Estimate for the company has increased 7.4%.

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 Bausch 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

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at C4 Therapeutics, Inc. (CCCC), which currently has a Momentum Style Score of B. 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. C4 Therapeutics, Inc. 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 CCCC that show why this company 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 CCCC, shares are up 13.67% over the past week while the Zacks Medical - Biomedical and Genetics industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 10.41% compares favorably with the industry's 3.27% 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 C4 Therapeutics, Inc. have increased 10.11% over the past quarter, and have gained 54.41% in the last year. In comparison, the S&P 500 has only moved 3.16% and 20.79%, respectively.

Investors should also pay attention to CCCC'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. CCCC is currently averaging 2,570,833 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 CCCC.

Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost CCCC's consensus estimate, increasing from -$0.87 to -$0.85 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom Line

Given these factors, it shouldn't be surprising that CCCC is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep C4 Therapeutics, Inc. 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

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 Marcus 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. 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 Marcus 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 Marcus

For the fiscal year ending December 2026, this operator of movie theaters, hotels and resorts is expected to earn $1.28 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Marcus. Over the past three months, the Zacks Consensus Estimate for the company has increased 71.1%.

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 Marcus 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 Astronics Corporation (ATRO), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

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

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

Set to Beat the Market?

In order to see if ATRO is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.

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 ATRO, shares are up 20.19% over the past week while the Zacks Aerospace - Defense Equipment industry is up 1.89% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.13% compares favorably with the industry's 2.59% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Astronics Corporation have risen 3.52%, and are up 156.38% in the last year. In comparison, the S&P 500 has only moved 3.16% and 20.79%, respectively.

Investors should also take note of ATRO'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 ATRO is averaging 676,403 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 ATRO.

Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ATRO's consensus estimate, increasing from $2.23 to $2.55 in the past 60 days. Looking at the next fiscal year, 2 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 ATRO is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Astronics Corporation 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

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.

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 Faraday Future Intelligent Electric 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.

For Faraday Future Intelligent Electric, 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 Faraday Future Intelligent Electric

This company is expected to earn -$142.29 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Faraday Future Intelligent Electric. Over the past three months, the Zacks Consensus Estimate for the company has increased 19.9%.

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 Faraday Future Intelligent Electric 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

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at PBF Energy (PBF), which currently has a Momentum Style Score of B. 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. PBF Energy currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

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

Set to Beat the Market?

In order to see if PBF is a promising momentum pick, let's examine some Momentum Style elements to see if this refiner holds up.

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

For PBF, shares are up 16.43% over the past week while the Zacks Oil and Gas - Refining and Marketing industry is up 9.23% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 12.28% compares favorably with the industry's 4.07% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of PBF Energy have risen 74.69%, and are up 213.48% in the last year. In comparison, the S&P 500 has only moved 3.16% and 20.79%, respectively.

Investors should also pay attention to PBF'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. PBF is currently averaging 3,270,012 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 PBF.

Over the past two months, 3 earnings estimates moved higher compared to 1 lower for the full year. These revisions helped boost PBF's consensus estimate, increasing from $8.18 to $15.74 in the past 60 days. Looking at the next fiscal year, 5 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 PBF is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep PBF Energy 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

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 EPR Properties 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 EPR Properties, 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 EPR Properties

This real estate investment trust is expected to earn $5.55 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for EPR Properties. 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 EPR Properties 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

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Darling Ingredients (DAR), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

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

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

Set to Beat the Market?

Let's discuss some of the components of the Momentum Style Score for DAR that show why this producer of natural ingredients from edible and inedible bionutrients 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 DAR, shares are up 12.84% over the past week while the Zacks Food - Miscellaneous industry is up 0.43% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7% compares favorably with the industry's 5.95% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Darling Ingredients have increased 13.79% over the past quarter, and have gained 113.2% in the last year. On the other hand, the S&P 500 has only moved 3.16% and 20.79%, respectively.

Investors should also pay attention to DAR'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. DAR is currently averaging 2,269,271 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 DAR.

Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost DAR's consensus estimate, increasing from $4.55 to $6.98 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 DAR is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Darling Ingredients 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

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for UniFirst 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 transaction of large amounts of shares then leads to price movement for the stock.

For UniFirst, 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 UniFirst

This uniform provider is expected to earn $7.49 per share for the fiscal year ending August 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for UniFirst. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.9%.

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 UniFirst 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.

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 Mettler-Toledo 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 Mettler-Toledo 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 Mettler-Toledo

This maker of precision instruments is expected to earn $47.35 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Mettler-Toledo. 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 Mettler-Toledo 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.

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 Getty Realty 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 Getty Realty, 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 Getty Realty

For the fiscal year ending December 2026, this real estate investment trust is expected to earn $2.53 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Getty Realty. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.2%.

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 Getty Realty 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

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 Remitly Global, Inc. (RELY), 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. Remitly Global, Inc. currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

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

Set to Beat the Market?

In order to see if RELY is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.

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 RELY, shares are up 7.7% over the past week while the Zacks Financial Transaction Services industry is up 2.35% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.05% compares favorably with the industry's 4.02% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Remitly Global, Inc. have risen 23.55%, and are up 32.71% in the last year. In comparison, the S&P 500 has only moved 3.16% and 20.79%, respectively.

Investors should also take note of RELY'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 RELY is averaging 3,182,855 shares for the last 20 days..

Earnings Outlook

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

Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost RELY's consensus estimate, increasing from $1.38 to $1.57 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.

Bottom Line

Given these factors, it shouldn't be surprising that RELY is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Remitly Global, Inc. 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

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 Ametek 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. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

For Ametek, 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 Ametek

This maker of electronic instruments and electromechanical devices is expected to earn $8.31 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Ametek. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.4%.

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 Ametek 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

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at NGL Energy Partners LP (NGL), 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. NGL Energy Partners LP currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

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

Set to Beat the Market?

In order to see if NGL is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.

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 NGL, shares are up 6.46% over the past week while the Zacks Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is up 5.7% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 6.03% compares favorably with the industry's 5.25% 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 NGL Energy Partners LP have increased 4.73% over the past quarter, and have gained 245.14% in the last year. In comparison, the S&P 500 has only moved 3.16% and 20.79%, respectively.

Investors should also take note of NGL'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 NGL is averaging 256,911 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 NGL.

Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost NGL's consensus estimate, increasing from $0.82 to $1.38 in the past 60 days. Looking at the next fiscal year, 1 estimate has 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 NGL is a #1 (Strong 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 NGL Energy Partners LP 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

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.

As such, the Zacks rating upgrade for Baytex 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.

For Baytex, 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 Baytex

This oil and natural gas company is expected to earn $0.41 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Baytex. Over the past three months, the Zacks Consensus Estimate for the company has increased 20.6%.

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 Baytex 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

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at HBT Financial (HBT), which currently has a Momentum Style Score of B. 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. HBT Financial 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 HBT that show why this bank holding company 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 HBT, shares are up 2.31% over the past week while the Zacks Banks - Northeast industry is up 1.01% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9.04% compares favorably with the industry's 1.83% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of HBT Financial have increased 23.9% over the past quarter, and have gained 41.11% in the last year. On the other hand, the S&P 500 has only moved 3.16% and 20.79%, respectively.

Investors should also pay attention to HBT'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. HBT is currently averaging 146,838 shares for the last 20 days.

Earnings Outlook

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

Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost HBT's consensus estimate, increasing from $2.95 to $3.01 in the past 60 days. Looking at the next fiscal year, 2 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 HBT is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep HBT Financial 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

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Financial Institutions (FISI), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Financial Institutions 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 FISI that show why this holding company for Five Star Bank 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 FISI, shares are up 0.24% over the past week while the Zacks Banks - Northeast industry is up 1.01% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.35% compares favorably with the industry's 1.83% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Financial Institutions have risen 13.91%, and are up 57.49% in the last year. On the other hand, the S&P 500 has only moved 3.16% and 20.79%, respectively.

Investors should also take note of FISI'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 FISI is averaging 160,430 shares for the last 20 days..

Earnings Outlook

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

Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost FISI's consensus estimate, increasing from $3.96 to $4.21 in the past 60 days. Looking at the next fiscal year, 1 estimate has 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 FISI is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Financial Institutions 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

COCO’s Price Performance, Valuation & Estimates

Shares of Vita Coco have gained 19.6% in the past six months compared with the industry’s growth of 4.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, COCO trades at a forward price-to-earnings ratio of 30.23X compared with the industry’s average of 19.96X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for COCO’s 2026 and 2027 earnings per share (EPS) indicates year-over-year growth of 64.7% and 15.4%, respectively. The company’s EPS estimate for 2026 and 2027 has moved north in the past 30 days.

Image Source: Zacks Investment Research

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

Key Consumer Staple Picks

The Chefs' Warehouse, Inc. CHEF, which is a distributor of specialty food products in the United States, currently sports a Zacks Rank of 1. 

The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 10.6% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average. 

Darling Ingredients Inc. DAR, which produces sustainable natural ingredients derived from edible and inedible bio-nutrients, currently sports a Zacks Rank of 1. 

The consensus estimate for Darling Ingredients’ current financial-year sales is expected to rise 12.8% from the year-ago reported figure. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average. 

Utz Brands, Inc. UTZ, which is a leading manufacturer of a diverse portfolio of salty snacks, currently carries a Zacks Rank #2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.
 
The Zacks Consensus Estimate for UTZ’s current financial-year sales indicates a jump of 3.7% from the year-ago number.

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

Do GE’s Peers Focus on Returning Capital to Shareholders?

3M Company MMM rewarded its shareholders with dividend payouts of $0.8 billion and $3 billion in buybacks in the first six months of 2026. Exiting the second quarter of 2026, 3M had approximately $1.8 billion remaining under the share repurchase program. Also, in February 2026, 3M hiked its quarterly dividend by 6.8%.

Howmet Aerospace HWM remains focused on rewarding its shareholders handsomely through dividends and share buyback programs. In the first six months of 2026, Howmet paid dividends of $97 million, and in July 2026, it hiked its dividend by 17% to 14 cents per share (annually: 56 cents). On a year-to-date basis through July, HWM repurchased shares worth $800 million. As of Aug. 6, 2026, Howmet’s total share repurchase authorization available was $697 million.

GE's Price Performance, Valuation and Estimates

Shares of GE Aerospace have gained 3% in the past six months against the industry’s decline of 10%.

Image Source: Zacks Investment Research

From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 40.15X, above the industry’s average of 33.51X. GE Aerospace carries a Value Score of D.

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The Zacks Consensus Estimate for GE’s earnings has increased for both 2026 and 2027 over the past 60 days.

Image Source: Zacks Investment Research

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

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 key question is whether that hardware traction can outpace the spending needed to improve fidelity, scale systems and support commercialization. Gross margin improved, but the operating loss widened, leaving the next large system delivery as an important test.

RGTI's Q2 Revenue Beat Shows Hardware Demand

Second-quarter revenues reached $5.1 million, up 185.3% from $1.8 million a year earlier and 4.7% above the Zacks Consensus Estimate. The increase came mainly from higher sales of 9-qubit Novera quantum computing systems and related products.

Sales of quantum computers and quantum components contributed about $4.1 million of quarterly revenues. The first two 9-qubit systems delivered in 2026 went to commercial organizations, making on-premises hardware a larger part of Rigetti's revenue mix.

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Rigetti's Cost Growth Dulls the Revenue Surge

Gross profit rose 286.6% year over year to $2.2 million as gross margin expanded about 1,120 basis points to 42.6%. The mix benefited from Novera system sales, which carry a higher gross-margin profile than collaborative research and professional services.

The cost structure still dwarfed the revenue base. Research and development expenses increased 53.3% to $20.7 million, selling, general and administrative expenses rose 37.5% to $9.5 million and total operating expenses climbed 47.9% to $30.3 million. Operating loss widened to $28.1 million from $19.9 million.

RGTI's Customer Mix Keeps Results Lumpy

Customer concentration remained high in the quarter. Rigetti's largest customer represented 64% of revenues and another accounted for 16%. Management expects quarterly and annual revenues to fluctuate with contract mix, pricing, milestones and delivery schedules while development contracts and on-premises system sales remain central to the model.

That concentration sits in a competitive market. International Business Machines Corporation IBM said in June that it plans to invest more than $10 billion in quantum computing over five years. Alphabet Inc. GOOGL, through Google Quantum AI, continues to develop superconducting systems and expanded its research into neutral-atom computing in March. Until practical workloads and repeat usage broaden, Rigetti's reported growth can remain volatile.

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Rigetti's C-DAC Order Shapes the Next Revenue Test

Rigetti's $8.4 million order from India's Centre for Development of Advanced Computing is for an on-premises 108-qubit system. The company expects to recognize the associated revenues in the fourth quarter of 2026 after installation and performance acceptance testing.

Completion would mark a larger system-sale event than the 9-qubit Novera deliveries that supported second-quarter growth. It would also provide another measure of whether customer interest can translate into sizable hardware revenues as Rigetti expands beyond research contracts and cloud access.

RGTI's Scores Temper the Q2 Revenue Optimism

The second quarter strengthened the evidence for hardware demand, but it did not establish operating leverage. Revenue growth, gross-margin expansion and the planned C-DAC delivery are constructive, yet the current expense base and concentrated customer mix keep execution risk elevated.

RGTI carries a Zacks Rank #5 (Strong Sell), with a Value Score of F, a Growth Score of F, a Momentum Score of D and a VGM Score of F. The Zacks Rank points to an unfavorable near-term earnings-estimate revision backdrop. The Style Scores also provide little support across value, growth and momentum factors, keeping the focus on whether future sales can broaden and costs can scale more favorably.

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

That opportunity comes with a demanding valuation and an operating model that remains far from scale. For investors weighing whether to buy now or wait, commercial traction must be balanced against losses, execution risk and a premium price.

Rigetti's Sales Growth Shows Commercial Traction

Second-quarter 2026 revenues climbed 185.3% year over year to $5.1 million, driven mainly by sales of 9-qubit Novera systems and related products. The increase shows that on-premises hardware is beginning to contribute more meaningfully alongside development contracts and cloud access.

Rigetti also has an $8.4 million order from India’s Centre for Development of Advanced Computing (C-DAC) for an on-premises 108-qubit system. Management expects to recognize that revenue in the fourth quarter of 2026 after installation and performance acceptance testing, giving the company another sizable system milestone if deployment remains on schedule.

RGTI's Cost Base Still Outruns Revenue

The spending required to advance Rigetti’s roadmap remains much larger than its current revenue base. Second-quarter operating expenses rose 47.9% year over year to $30.3 million, while research and development spending increased 53.3% to $20.7 million.

Operating loss widened to $28.1 million from $19.9 million a year earlier. Management expects research and development spending to increase and 2026 capital expenditures to stay elevated as Rigetti invests in fabrication equipment, dilution refrigeration needed to cool quantum hardware and infrastructure for higher-qubit systems.

Rigetti's Liquidity Extends Its Runway

Rigetti ended the second quarter with $541.3 million in cash, cash equivalents and available-for-sale investments and no debt. That liquidity gives the company room to fund work on scale, fidelity, system integration and planned infrastructure without an immediate reliance on debt financing.

The balance sheet does not remove execution risk, but it lowers near-term financing pressure while losses remain high. Rigetti can continue funding technical milestones even as commercial revenues remain tied to system deliveries and project timing.

RGTI's Valuation Leaves Little Room for Misses

RGTI trades at 98.7X forward 12-month sales, far above 3.9X for its Zacks sub-industry and 5.0X for the S&P 500. One customer accounted for 64% of second-quarter revenues and another for 16%, while the prospective U.S. Department of Commerce award would involve equity issuance if finalized. That combination leaves little room for delivery or technology delays.

Image Source: Zacks Investment Research

Commercialization across quantum computing is also uneven. IonQ IONQ reported second-quarter 2026 revenues of $80.1 million, showing that some peers have reached a larger revenue base. D-Wave Quantum QBTS reported $3.1 million for the quarter, illustrating that revenue scale still varies widely across competing platforms.

Image Source: Zacks Investment Research

RGTI's Scores Argue for Investor Patience

The current setup favors patience rather than chasing Rigetti’s long-term technology potential at any price. The stock carries a Zacks Rank #5 (Strong Sell), while its Value Score of F, Growth Score of F, Momentum Score of D and VGM Score of F present an unfavorable near-term combination.

Zacks Style Scores are designed to complement the Zacks Rank, not override it. Rigetti’s technical progress and system sales may improve its long-term opportunity, but the current Rank and weak Style Scores, combined with a triple-digit sales multiple and high execution demands, support a cautious wait-and-see stance.

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 16.7% in the year-to-date period compared with the industry’s 7.2% fall. However, the S&P 500 has risen 11.2% during the same timeframe.

The renowned provider of POCs has a market capitalization of $150.7 million. The company projects 13.9% earnings growth for 2026 and anticipates continued business improvements going forward. Inogen’s P/S ratio of 0.4 compared with the industry’s 2.7 makes its valuation attractive.

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Let’s delve deeper.

Factors Driving INGN’s Prospects

Strong POC Demand and Growing B2B Momentum: Portable oxygen concentrators (POCs) remain Inogen’s core growth engine, with unit volumes increasing more than 12% year over year in the second quarter of 2026. Management said the company continues to outpace market growth as it gains traction with more U.S. distributors. U.S. B2B revenues grew at a mid-single-digit rate, while the number of customers moving through the B2B channel increased sequentially from the first quarter. Inogen is also strengthening its value proposition to home medical equipment (HME) providers through an eight-year useful life, compared with the five-year industry standard, along with serviceability, availability and growing real-world outcomes data. This supports the company's strategy of shifting toward HME-led POC adoption and building a more sustainable U.S. growth channel.

New Products Expand Inogen’s Addressable Market: Inogen is diversifying beyond its traditional POC portfolio through Voxi stationary oxygen concentrators and Aurora CPAP masks. The two products contributed more than 100 basis points to second-quarter growth, while Voxi has surpassed 5,000 units shipped. Management estimates the U.S. stationary oxygen concentrator market at approximately $300 million and the CPAP mask market at roughly $2.2 billion, providing significant opportunities to expand within existing HME relationships. Aurora’s customer count more than doubled sequentially, while both products continue to receive positive feedback from patients and healthcare providers. These launches could become larger contributors as account penetration and adoption increase during the second half of 2026.

International Expansion Remains a Consistent Growth Engine: International revenues increased 15% year over year to $41.3 million in the second quarter, marking the 10th consecutive quarter of double-digit international growth. Inogen continues to deepen distributor relationships while expanding across Eastern Europe and Latin America, with the Rove 6 POC recently launched in Canada following its Brazil launch in the prior quarter. Management views these geographic expansions as part of a repeatable strategy to enter new markets and improve access to portable oxygen therapy. Although the timing of certain distributor purchases may affect the second half of 2026, the company expects international expansion to remain a long-term source of growth.

INGN: Key Risks to Watch

U.S. Channel Mix Continues to Pressure Direct and Rental Revenues: Inogen's U.S. business remains exposed to a structural shift toward HMEs prescribing POCs when patients first enter long-term oxygen therapy. While this benefits the B2B channel, it reduces the traditional funnel for Inogen's direct-to-consumer (DTC) and rental businesses. U.S. sales declined 2% year over year in the second quarter, while rental revenues fell 12%. Management expects continued DTC declines in the second half, with B2B gains only partially offsetting the pressure. Although the company sees opportunities to stabilize DTC and improve rental performance, the faster-than-anticipated channel shift remains a significant near-term constraint on U.S. growth.

International Distributor Inventory Timing Could Create Volatility: Despite sustained international growth, Inogen expects certain distributors to manage inventory during the second half of 2026. Management attributed the anticipated slowdown to factors including delayed tenders and distributor consolidation, describing the impact as transitory. However, the company incorporated the timing of these purchases into its revised outlook, with third-quarter revenues expected to be roughly in line with the prior-year period. Because international sales have been an important contributor to overall growth, changes in distributor purchasing patterns could create quarterly revenue volatility even if underlying demand remains healthy.

Reimbursement and Clinical Execution Risk for Simeox: Inogen’s Simeox airway-clearance technology represents a potentially significant growth opportunity, but its commercial potential depends on clinical evidence and reimbursement progress. Management estimates a U.S. total addressable market of approximately $500 million in non-cystic fibrosis bronchiectasis, but access to this market is tied to CMS reimbursement. The IMPACTS-200 trial is progressing as planned, while Inogen expects to conduct a second trial to build a stronger evidence package for CMS and payers. Management noted that the company effectively has “one shot on goal” with the reimbursement process, making successful clinical outcomes and coverage decisions critical to Simeox’s future contribution. Delays or unfavorable outcomes could push out the product’s commercial opportunity and limit the pace of portfolio diversification.

Inogen, Inc Price

Inogen, Inc price | Inogen, Inc Quote

INGN’s Estimate Trend

Inogen has been witnessing a positive estimate revision trend for 2026. In the past 60 days, the Zacks Consensus Estimate for its loss per share has contracted by 3 cents to 74 cents.

The Zacks Consensus Estimate for 2026 revenues is pegged at $356.7 million, suggesting a 2.3% improvement from the year-ago reported number.

Key Picks

Some better-ranked stocks from the broader medical space are Globus Medical GMED, West Pharmaceutical WST and The Cooper Companies COO.

Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.

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

Q3’26 Earnings Estimate Revisions Negative for META

The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $6.61 per share, down 2.9% over the past 30 days, suggesting an 8.8% decline from the figure reported in the year-ago quarter. 
 

Meta expects total revenues between $61 billion and $64 billion for the third quarter of 2026. The consensus mark for third-quarter 2026 revenues is pegged at $63.17 billion, suggesting 23.3% growth from the figure reported in the year-ago quarter.

META’s AI Integration Boosts Ad Engagement Amid Challenges

META’s focus on integrating AI into its platforms — Facebook, WhatsApp, Instagram, Messenger and Threads — is driving user as well as advertising engagement. AI is heavily dependent on data, of which META has a trove, driven by its more than 3.6 billion daily users. Instagram reached 2 billion daily active users and Threads surpassed 500 million monthly active users in the second quarter of 2026. AI recommendations that deliver higher quality and more relevant content are expected to drive engagement.  Instagram time spent increased at a double-digit rate in the second quarter of 2026, while Facebook video time grew 9% globally, supported by better recommendations.

Meta’s Large Language Models-powered advertising systems are improving conversion efficiency. Recent advancements generated an 8.3% increase in Facebook ad clicks and a 15.7% uplift in conversions, suggesting AI investments are already strengthening the company’s core advertising engine. The company has completed the global expansion of Threads ads and is expanding advertising capabilities in WhatsApp Status. This will allow Meta to monetize engagement across a broader portion of its ecosystem.

However, Meta’s significant dependence on advertising as a revenue source has been a concern for investors. The company faces significant competitive pressure from Snap SNAP for the attention of younger demographics, while in advertising, Amazon AMZN and Alphabet GOOGL remain major competitors.  Reels continues to monetize at a lower rate than Feed and Stories, creating headwind. META shares have underperformed Amazon and Alphabet YTD but outperformed Snap. Shares of Amazon and Alphabet have returned 12.9% and 8.9%, respectively, while Snap has dropped 35.4%.

META Stock’s Price Performance

Image Source: Zacks Investment Research

The biggest challenge remains converting enormous AI investments into sustainable returns. Meta acknowledges that AI and Reality Labs investments are reducing cash flow, operating margins and profitability and expects spending to continue increasing. Reality Labs reduced 2025 operating profit by approximately $19.19 billion, and 2026 Reality Labs operating losses are expected to remain similar to 2025 levels.

META Shares Trade at a Discount

Meta shares are trading at a discount, as suggested by the Value Score of B. 

In terms of the forward 12-month price/sales, META is trading at 4.85X, lower than the broader sector’s 6.37X and Alphabet’s 8.31X. However, Meta shares are trading at a premium compared with Amazon and Snap, shares of which are trading at 3.10X and 1.22X, respectively.  

META Stock’s Valuation

Image Source: Zacks Investment Research

Conclusion

META’s prospects are supported by AI-driven improvements in engagement, advertising efficiency and monetization across Instagram, Facebook, Threads and WhatsApp. The company’s massive user base and expanding AI capabilities could strengthen the advertising business and create additional revenue opportunities over time. However, sharply rising infrastructure spending, weak free cash flow, higher debt levels, persistent Reality Labs losses and intense competition remain key concerns. The recent decline has made META’s valuation relatively attractive. Still, continued earnings estimate reductions and uncertainty over returns from AI investments limit near-term upside. Investors may therefore prefer to wait for clearer evidence of improving margins and AI-related returns before becoming more aggressive on META shares.

Meta 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

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 Cincinnati, Fifth Third Bancorp (FITB) is in the Finance sector, and so far this year, shares have seen a price change of 16.43%. Currently paying a dividend of $0.40 per share, the company has a dividend yield of 2.94%. In comparison, the Banks - Major Regional industry's yield is 2.73%, while the S&P 500's yield is 1.33%.

Looking at dividend growth, the company's current annualized dividend of $1.60 is up 3.9% from last year. Over the last 5 years, Fifth Third Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 7.84%. 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. Fifth Third Bancorp's current payout ratio is 41%, meaning it paid out 41% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, FITB expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $4.14 per share, representing a year-over-year earnings growth rate of 14.05%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer 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, FITB 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Headquartered in La Molina, Credicorp (BAP) is a Finance stock that has seen a price change of 28.99% so far this year. Currently paying a dividend of $14.48 per share, the company has a dividend yield of 3.91%. In comparison, the Banks - Foreign industry's yield is 2.37%, while the S&P 500's yield is 1.33%.

Looking at dividend growth, the company's current annualized dividend of $14.48 is up 31.5% from last year. Over the last 5 years, Credicorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 24.68%. 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. Credicorp's current payout ratio is 54%, meaning it paid out 54% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for BAP for this fiscal year. The Zacks Consensus Estimate for 2026 is $29.41 per share, which represents a year-over-year growth rate of 20.78%.

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, BAP 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

U.S. Bancorp (USB) is headquartered in Minneapolis, and is in the Finance sector. The stock has seen a price change of 15.78% since the start of the year. The company is paying out a dividend of $0.52 per share at the moment, with a dividend yield of 3.37% compared to the Banks - Major Regional industry's yield of 2.73% and the S&P 500's yield of 1.33%.

Looking at dividend growth, the company's current annualized dividend of $2.08 is up 2% from last year. Over the last 5 years, U.S. Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 4.01%. 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. U.S. Bancorp's current payout ratio is 42%, meaning it paid out 42% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, USB expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.22 per share, which represents a year-over-year growth rate of 12.99%.

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.

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 USB 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 Financial Corp. (THFF) is headquartered in Terre Haute, and is in the Finance sector. The stock has seen a price change of 30.87% since the start of the year. The holding company for First Financial Bank is currently shelling out a dividend of $0.56 per share, with a dividend yield of 2.83%. This compares to the Banks - Midwest industry's yield of 2.36% and the S&P 500's yield of 1.33%.

Looking at dividend growth, the company's current annualized dividend of $2.24 is up 9.8% from last year. Over the last 5 years, First Financial Corp. has increased its dividend 4 times on a year-over-year basis for an average annual increase of 17.41%. 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 Financial Corp.'s current payout ratio is 31%, meaning it paid out 31% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for THFF for this fiscal year. The Zacks Consensus Estimate for 2026 is $7.59 per share, with earnings expected to increase 13.62% from the year ago period.

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.

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. That said, they can take comfort from the fact that THFF 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 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.

Ameren (AEE) is headquartered in St Louis, and is in the Utilities sector. The stock has seen a price change of 8.94% since the start of the year. Currently paying a dividend of $0.75 per share, the company has a dividend yield of 2.76%. In comparison, the Utility - Electric Power industry's yield is 3.19%, while the S&P 500's yield is 1.33%.

Looking at dividend growth, the company's current annualized dividend of $3.00 is up 5.6% from last year. Over the last 5 years, Ameren has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.11%. 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. Ameren's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, AEE expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.40 per share, representing a year-over-year earnings growth rate of 7.36%.

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 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 AEE 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 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.

Based in Manhattan, Landmark Bancorp (LARK) is in the Finance sector, and so far this year, shares have seen a price change of 23.14%. Currently paying a dividend of $0.21 per share, the company has a dividend yield of 2.6%. In comparison, the Financial - Savings and Loan industry's yield is 2.14%, while the S&P 500's yield is 1.33%.

Looking at dividend growth, the company's current annualized dividend of $0.84 is up 5% from last year. Over the last 5 years, Landmark Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 6.42%. 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. Landmark Bancorp's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.

LARK is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $3.47 per share, with earnings expected to increase 13.03% from the year ago period.

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, LARK 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 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 Atlanta, Invesco (IVZ) is in the Finance sector, and so far this year, shares have seen a price change of 19.38%. Currently paying a dividend of $0.22 per share, the company has a dividend yield of 2.74%. In comparison, the Financial - Investment Management industry's yield is 2.37%, while the S&P 500's yield is 1.33%.

Looking at dividend growth, the company's current annualized dividend of $0.86 is up 3% from last year. Over the last 5 years, Invesco has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.66%. 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. Invesco's current payout ratio is 34%, meaning it paid out 34% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for IVZ for this fiscal year. The Zacks Consensus Estimate for 2026 is $2.82 per share, representing a year-over-year earnings growth rate of 38.92%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer 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, IVZ presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong 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

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 Cincinnati, Phillips Edison & Company, Inc. (PECO) is in the Finance sector, and so far this year, shares have seen a price change of 10.85%. Currently paying a dividend of $0.22 per share, the company has a dividend yield of 3.3%. In comparison, the REIT and Equity Trust - Retail industry's yield is 4.02%, while the S&P 500's yield is 1.33%.

Looking at dividend growth, the company's current annualized dividend of $1.30 is up 3.8% from last year. Over the last 5 years, Phillips Edison & Company, Inc. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.79%. 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. Phillips Edison & Company's current payout ratio is 48%, meaning it paid out 48% of its trailing 12-month EPS as dividend.

PECO is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $2.77 per share, with earnings expected to increase 6.54% from the year ago period.

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.

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, PECO 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Headquartered in Harrisburg, Mid Penn Bancorp (MPB) is a Finance stock that has seen a price change of 19.99% so far this year. The company is paying out a dividend of $0.23 per share at the moment, with a dividend yield of 2.47% compared to the Banks - Northeast industry's yield of 2.13% and the S&P 500's yield of 1.33%.

Looking at dividend growth, the company's current annualized dividend of $0.92 is up 12.2% from last year. Over the last 5 years, Mid Penn Bancorp has increased its dividend 1 times on a year-over-year basis for an average annual increase of 1.38%. 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. Mid Penn Bancorp's current payout ratio is 28%, meaning it paid out 28% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, MPB expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $3.33 per share, which represents a year-over-year growth rate of 10.26%.

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.

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, MPB 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.

BlackRock (BLK) is headquartered in New York, and is in the Finance sector. The stock has seen a price change of 6.49% since the start of the year. The investment firm is paying out a dividend of $5.73 per share at the moment, with a dividend yield of 2.01% compared to the Financial - Investment Management industry's yield of 2.37% and the S&P 500's yield of 1.33%.

Looking at dividend growth, the company's current annualized dividend of $22.92 is up 10% from last year. Over the last 5 years, BlackRock has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.33%. 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. BlackRock's current payout ratio is 45%, meaning it paid out 45% of its trailing 12-month EPS as dividend.

BLK is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $55.64 per share, which represents a year-over-year growth rate of 15.70%.

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.

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 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 BLK 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

In the past year, this Zacks Rank #3 (Hold) stock has rallied 33.9% compared with the industry’s 19.4% growth and the S&P 500 Composite’s 21.5% rise. 

The renowned provider of diagnostic information services has a market capitalization of $26.68 billion. The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 5.77%.

Factors Favoring DGX

Growth Momentum in the Base Business: Quest Diagnostics continues to address the needs of physicians, hospitals and consumers through broader access, clinical innovation and offering more integrated solutions. In the second quarter of 2026, physician channel revenues increased in the high single-digit range, supported by new customer wins, higher business with existing customers and growth in regions where the company expanded health plan access and completed acquisitions. The Fresenius Medical Care collaboration is also broadening Quest Diagnostics’ capabilities in kidney care.

Hospital channel revenues grew at a double-digit rate, primarily from Co-Lab Solutions with Corewell Health. Reference-testing revenues increased from both the first quarter and the prior-year period. The consumer-testing platform, QuestHealth.com, continued to generate revenue growth, supported by demand for wellness panels and newer services such as thyroid testing. The platform is also attracting consumer, wearable and wellness partners through flexible technology integration.

Image Source: Zacks Investment Research

Strong Potential of Advanced Diagnostics: Quest Diagnostics is expanding advanced diagnostics across cardiometabolic and endocrine, autoimmune, brain health, oncology and women’s and reproductive health. Several of these areas delivered double-digit revenue growth in the second quarter of 2026. Demand remained elevated for ApoB, Lp(a) and liver fibrosis tests, while the company continued to grow its analyzer solution for autoimmune disorders.

In brain health, the AD-Detect portfolio again produced double-digit growth. In oncology, New York State approved Haystack minimal residual disease, allowing commercial expansion across all 50 states. Quest Diagnostics also integrated selected cancer tests with Flatiron Health’s OncoEMR Molecular Profiling Integration platform. A pilot program with American Oncology Network is expected to support a broader rollout to Flatiron’s 4,700 clinicians and other providers later in 2026.

Strategic Imperative to Drive Operational Excellence: Quest Diagnostics’ Invigorate program now targets 3% annual cost savings and productivity improvements. The company is using automation and AI across laboratory and administrative processes to offset labor, benefit and reimbursement pressures while improving service quality. During the second quarter, Quest Diagnostics expanded AI-enabled cervical cancer screening and front-end specimen-processing automation to additional laboratories.

The company also launched IntelliDraw to guide specimen collection at physician offices and plans to introduce an AI-based supply tool at patient service centers. Project Nova remains a multi-year effort to transform order-to-cash processes, with higher spending expected in the second half of 2026 and the first implementation wave planned for fall 2027.

What Ails DGX?

Elevated Debt Level: As of June 30, 2026, the company’s long-term debt was $5.63 billion and cash and cash equivalents totaled $626 million. The current portion of long-term debt declined to $10 million after the company repaid $500 million of notes due in June and issued $500 million of 5.00% notes due in 2036. Interest expense totaled $126 million in the first half. Elevated debt could constrain financial flexibility as the company continues investing in acquisitions, automation and Project Nova.

Unstable Reimbursement and Cost Backdrop: Quest Diagnostics remains exposed to changes in government reimbursement, health policy and payer bargaining power. Management continues to assume a 30-basis-point (bps) revenue impact in 2026 from the expiration of enhanced Affordable Care Act exchange subsidies. Exchange requisitions were down about 8%, although higher tests per requisition and payer mix kept related revenues roughly flat through the second quarter. Second-quarter cost of services increased 10.9% year over year, while adjusted operating margin declined 40 bps to 16.5%.

DGX Stock Estimate Trend

The Zacks Consensus Estimate for Quest Diagnostics’ 2026 earnings per share (EPS) is projected to increase 13.2% to $11.15.

The consensus mark for 2026 revenues is pegged at $12.01 billion, suggesting 8.9% growth from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Globus Medical GMED, Veracyte VCYT and Teleflex TFX.

Globus Medical has an earnings yield of 5.8% compared to the industry’s negative 1.7% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED shares have rallied 37.1% against the industry’s 4.2% 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.

Veracyte, sporting a Zacks Rank #1, has an earnings yield of 4.6% against the industry’s negative 1.7% yield. Shares of the company have risen 34.8% against the industry’s 4.2% decline. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%. 

Teleflex, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 12.8% growth. Its earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%. TFX shares have rallied 4.3% against the industry’s 4.3% decline over the past 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

The MONARCH Platform is the first flexible, robotically assisted bronchoscopy platform and provides continuous visualization throughout procedures, including navigation to and biopsy of targets under direct vision. MONARCH QUEST 3 builds on this foundation by enhancing the platform’s ability to account for CT-to-body divergence and anatomical changes that may occur during bronchoscopy.

The latest release incorporates Polyphonic for MONARCH, Johnson & Johnson’s open digital ecosystem. The technology enables clinicians to review procedural volume data and collaborate through a centralized video library. By organizing each MONARCH case into a consistent format, the platform can support procedural review and learning.

Per management, being an early market entrant comes with the responsibility to continuously innovate. With MONARCH QUEST 3, Johnson & Johnson is advancing the MONARCH Platform through collaboration with clinicians, incorporating artificial intelligence, enhancing imaging integration and introducing software improvements to support procedural confidence and precision for patients.

Likely Trend of JNJ Stock Following the News

JNJ stock has gained 1.9% since the announcement on Monday. Year to date, shares of the company have climbed 29.2% compared with the industry’s 16.8% growth and the S&P 500’s 11.2% rise.

In the long run, MONARCH QUEST 3 could strengthen JNJ’s position in robotically assisted bronchoscopy and expand the clinical utility of the MONARCH Platform. Continued software innovation may support physician adoption, improve the platform’s competitive differentiation and create opportunities for recurring technology-driven revenue. Broader compatibility with existing imaging systems could also reduce infrastructure barriers for healthcare providers and support commercial expansion.

JNJ currently has a market capitalization of $658.89 billion.

Image Source: Zacks Investment Research

More on MONARCH QUEST 3

A key advancement in MONARCH QUEST 3 is AI-powered nodule segmentation, which is designed to automatically generate more accurate nodule boundaries with a single click during pre-procedural planning.

The software introduces enhancements to registration and navigation accuracy, helping clinicians maintain confidence as patient anatomy shifts during bronchoscopy. A new 3D Compass overlay improves visual orientation by connecting joystick controls with patient anatomy, simplifying scope-tip orientation during navigation.

Another important enhancement is broader compatibility with commonly used mobile and fixed cone-beam computed tomography (CBCT) imaging systems. This allows clinicians to leverage existing imaging infrastructure to manage CT-to-body divergence and improve lung nodule targeting.

Industry Prospects Favoring the Market

Per a report by Precedence Research, the global bronchoscopy market size is predicted to be valued at $3.77 billion in 2026 and is expected to witness a CAGR of 7.7% through 2035.

Growth is largely attributed to the increasing cases of respiratory diseases in the geriatric population, the use of disposable equipment and chronic obstructive pulmonary disease. The robotic-assisted bronchoscopy segment expects the fastest growth in the market, backed by the high precision, stability and advanced navigation capabilities offered by robotic systems, early and precise diagnosis of lung cancer and other pulmonary diseases, along with increasing adoption of robotic technology in minimally invasive procedures.

Other News

Johnson & Johnson recently announced that the FDA granted De Novo authorization for its OTTAVA Robotic Surgical System, the world’s first table-integrated soft tissue robotic system. The authorization covers multiple general surgery procedures, including gastric bypass, gastrectomy, cholecystectomy, splenectomy, gastric sleeve, appendectomy and hernia repair. OTTAVA integrates robotic arms into the operating table, offering a compact footprint, automated positioning, advanced instruments and connectivity to the Polyphonic digital ecosystem to support more efficient, data-driven surgical workflows.

Johnson & Johnson also announced FDA approval for its Dual Energy THERMOCOOL SMARTTOUCH SF Platform, an integrated catheter ablation solution enabling electrophysiologists to deliver both radiofrequency (RF) and pulsed field (PF) energy through a single catheter. Integrated with the CARTO ecosystem, the platform combines advanced mapping, imaging and PF Index guidance to support precise, adaptable procedures.

Johnson & Johnson Price

Johnson & Johnson price | Johnson & Johnson Quote

JNJ’s Zacks Rank & Key Picks

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

Some better-ranked stocks from the broader medical space are Globus Medical GMED, West Pharmaceutical WST and The Cooper Companies COO.

Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.

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

TSMC plans to direct about 70%-80% of its 2026 capital spending toward advanced process technologies. Specialty technologies will receive about 10%, while advanced packaging, testing, mask-making and other areas will account for another 10%-20%.

The company is also expanding its presence in Arizona with an additional $100 billion investment. The plan includes several wafer fabs for 2-nanometer and below technologies as well as advanced packaging fabs. TSMC expects the investment to strengthen the U.S. semiconductor ecosystem and supply chain while supporting high-tech jobs. In Taiwan, the company plans to build 13 leading-edge and advanced packaging fabs over the next several years.

At the same time, the company is focused on steadily increasing its cash dividend on both an annual and quarterly basis. In 2025, TSMC paid New Taiwan Dollar (TWD) 467 billion in cash dividends, with shareholders receiving TWD 18 per share, up 28.6% year over year. In 2026, the dividend is expected to increase to TWD 24 per share, up another 33% year over year.

TSM’s Peer Updates

GlobalFoundries GFS spent $408 million on capital expenditures in the second quarter, net of proceeds from government grants, or roughly 23% of revenue. Management expects full-year CapEx to come in toward the higher end of its 15%-20% range, with investments in additional capacity expected to support growing demand. At the second quarter of 2026-end the company’s cash, cash equivalents and marketable securities totaled approximately $3.3 billion. On July 14, GlobalFoundries paid its first-ever quarterly cash dividend of $0.12 per share, reflecting confidence in its future cash-generating capacity.

Intel INTC is raising its 2026 CapEx outlook on strong customer demand signals and now expects spending to exceed $20 billion, significantly above its initial expectations for the year. The company is also moving quickly to secure tool purchase orders from vendors, accelerate clean room build-outs and secure supplies of substrates and memory. The vast majority of 2027 capital spending is expected to go toward its U.S. network. Management stated that from 2021 through 2026, the company’s total spending on tools and space in the United States is approaching $100 billion, significantly more than any other semiconductor company over that period.

The Zacks Rundown for TSM Stock

Over the past 12 months, TSMC shares have rallied 78.5% compared with the industry’s 76.8% growth.

Image Source: Zacks Investment Research

TSM currently trades at a forward, five-year Price/Sales (P/S) of 10.90X compared with its historical median of 8.12X and the industry average of 10.81X.

Image Source: Zacks Investment Research

TSMC’s 2026 and 2027 earnings estimates have seen upward revisions over the past 90 days. 

Image Source: Zacks Investment Research

TSMC sports a Zacks Rank #1 (Strong Buy) at present. 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

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

The Cooper Companies has a Zacks Rank of #2 (Buy), while Merit Medical has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that COO is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

COO currently has a forward P/E ratio of 16.44, while MMSI has a forward P/E of 21.20. We also note that COO has a PEG ratio of 1.99. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MMSI currently has a PEG ratio of 2.03.

Another notable valuation metric for COO is its P/B ratio of 1.8. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MMSI has a P/B of 3.21.

These are just a few of the metrics contributing to COO's Value grade of B and MMSI's Value grade of C.

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

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 best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Boot Barn has a Zacks Rank of #2 (Buy), while Industria de Diseno Textil SA has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BOOT is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

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

BOOT currently has a forward P/E ratio of 17.78, while IDEXY has a forward P/E of 26.74. We also note that BOOT has a PEG ratio of 1.05. 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. IDEXY currently has a PEG ratio of 2.74.

Another notable valuation metric for BOOT is its P/B ratio of 3.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, IDEXY has a P/B of 9.43.

These metrics, and several others, help BOOT earn a Value grade of B, while IDEXY has been given a Value grade of D.

BOOT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BOOT is likely the superior value option right now.

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

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Progress Software and Microsoft are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that PRGS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

PRGS currently has a forward P/E ratio of 7.02, while MSFT has a forward P/E of 24.56. We also note that PRGS has a PEG ratio of 1.40. 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. MSFT currently has a PEG ratio of 1.55.

Another notable valuation metric for PRGS is its P/B ratio of 3.5. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MSFT has a P/B of 8.08.

These are just a few of the metrics contributing to PRGS's Value grade of A and MSFT's Value grade of D.

PRGS sticks out from MSFT in both our Zacks Rank and Style Scores models, so value investors will likely feel that PRGS is the better option right now.

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

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Vestas Wind Systems AS and Eaton are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that VWDRY likely has seen a stronger improvement to its earnings outlook than ETN has recently. But this is just one factor that value investors are interested in.

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

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

VWDRY currently has a forward P/E ratio of 20.32, while ETN has a forward P/E of 30.73. We also note that VWDRY has a PEG ratio of 0.80. 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. ETN currently has a PEG ratio of 2.63.

Another notable valuation metric for VWDRY is its P/B ratio of 7.24. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ETN has a P/B of 7.95.

These are just a few of the metrics contributing to VWDRY's Value grade of B and ETN's Value grade of F.

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

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 best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Intercorp Financial Services Inc. and American Express are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that IFS likely has seen a stronger improvement to its earnings outlook than AXP has recently. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

IFS currently has a forward P/E ratio of 8.99, while AXP has a forward P/E of 18.74. We also note that IFS has a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AXP currently has a PEG ratio of 1.34.

Another notable valuation metric for IFS is its P/B ratio of 1.58. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AXP has a P/B of 6.52.

These are just a few of the metrics contributing to IFS's Value grade of A and AXP's Value grade of C.

IFS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that IFS is likely the superior value option right now.

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 best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Grupo Cibest has a Zacks Rank of #1 (Strong Buy), while ITT has a Zacks Rank of #3 (Hold). This means that CIB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

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

CIB currently has a forward P/E ratio of 9.08, while ITT has a forward P/E of 25.41. We also note that CIB has a PEG ratio of 0.75. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ITT currently has a PEG ratio of 1.71.

Another notable valuation metric for CIB is its P/B ratio of 1.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ITT has a P/B of 3.87.

These metrics, and several others, help CIB earn a Value grade of B, while ITT has been given a Value grade of D.

CIB sticks out from ITT in both our Zacks Rank and Style Scores models, so value investors will likely feel that CIB is the better option right now.

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

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

The Bank of East Asia Ltd. and HDFC Bank are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that BKEAY likely has seen a stronger improvement to its earnings outlook than HDB has recently. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

BKEAY currently has a forward P/E ratio of 9.55, while HDB has a forward P/E of 14.00. We also note that BKEAY has a PEG ratio of 0.30. 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. HDB currently has a PEG ratio of 1.10.

Another notable valuation metric for BKEAY is its P/B ratio of 0.41. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, HDB has a P/B of 1.8.

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

BKEAY stands above HDB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BKEAY is the superior value option right now.

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

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Prosperity Bancshares has a Zacks Rank of #2 (Buy), while Cullen/Frost Bankers has a Zacks Rank of #3 (Hold). This means that PB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

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

PB currently has a forward P/E ratio of 11.22, while CFR has a forward P/E of 15.13. We also note that PB has a PEG ratio of 0.79. 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. CFR currently has a PEG ratio of 2.53.

Another notable valuation metric for PB is its P/B ratio of 0.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CFR has a P/B of 2.29.

Based on these metrics and many more, PB holds a Value grade of B, while CFR has a Value grade of C.

PB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PB is likely the superior value option right now.

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

Diversified Commercial Portfolio Supports Long-Term Growth

Anika has a diversified portfolio spanning osteoarthritis ("OA") pain management and regenerative solutions. Its key OA products include Monovisc and Orthovisc, hyaluronic acid-based injectables used for pain relief, as well as Cingal, a single-injection treatment combining cross-linked hyaluronic acid with a fast-acting steroid. Cingal is already marketed in more than 35 countries outside the United States and represents a potential future U.S. growth opportunity as development progresses toward a possible FDA filing. Its regenerative portfolio includes Integrity for tendon repair, Tactoset for bone regeneration and Hyalofast for cartilage repair. Hyalofast is marketed internationally, while it remains under regulatory review in the United States.

Since late 2024, Anika has been reporting revenues through two channels. The commercial channel includes regenerative solutions and international OA pain management, in which the company controls sales, marketing and pricing. The original equipment manufacturer ("OEM") channel includes U.S. OA pain management and non-orthopedic products that Anika develops and manufactures for OEM partners, while the partners control sales and pricing.

Anika delivered a strong second quarter of 2026, supported by growth across its commercial and OEM channels. Total revenues increased 16% year over year while commercial channel revenues reached a record $13.9 million, up 17% year over year. International revenues hit a record $12.6 million, rising 22% year over year, highlighting growing demand across global markets. The OEM channel generated $18.7 million in revenues, up 14% year over year. Performance benefited from higher transfer-unit volumes, favorable order timing and stronger U.S. Monovisc sales, with continued international growth also contributing. These trends helped increase production and manufacturing throughput, creating additional operating leverage.

Anika’s integrity business continued to gain traction, with global unit volumes increasing both sequentially and year over year.

Cingal & Hyalofast Strengthen ANIK’s Pipeline

Anika continues to make progress across its key pipeline programs. Cingal development remains on track, with its bioequivalence study progressing and chemistry, manufacturing and controls activities accelerating ahead of a planned new drug application submission. A successful U.S. filing and subsequent approval could expand Cingal’s commercial opportunity and provide another meaningful growth catalyst.

Meanwhile, Hyalofast premarket approval activities continue to progress, with Anika actively engaging with the FDA throughout the ongoing review process and addressing the issues outlined in the previously disclosed deficiency letter. However, because of uncertainty surrounding the timing of the Hyalofast regulatory process, Anika has removed potential Hyalofast revenues from its 2027 commercial channel forecast.

Anika Raises 2026 Guidance, Adopts Conservative 2027 Outlook

Investors further gained confidence as Anika raised its 2026 financial guidance following strong first-half performance, continued commercial channel momentum, favorable OEM trends and improved profitability. Total revenue growth is expected to be 5% to 10%, up from the previous 1% to 9% range. OEM revenue growth is projected at 0% to 5%, while commercial channel revenues are expected to grow 12% to 18%.

For 2027, Anika has adopted a more conservative revenue forecasting approach, excluding products that have not yet received regulatory approval or clearance. Commercial channel revenue growth is expected at 5% to 15%, while OEM revenues are projected to be flat to modestly lower. Overall, 2027 total company revenues are expected to range from flat to 5% growth.

Anika Therapeutics Inc. Price and Consensus

Anika Therapeutics Inc. price-consensus-chart | Anika Therapeutics Inc. Quote

ANIK’s Zacks Rank & Other Stocks to Consider

Anika currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the biotech sector are Amneal Pharmaceuticals AMRX and Precigen PGEN, currently sporting a Zacks Rank #1 each, while AC Immune ACIU carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 30 days, earnings per share estimates for Amneal Pharmaceuticals have increased from $1.00 to $1.02 for 2026. Over the same period, estimates for earnings per share increased from $1.12 to $1.21 for 2027. AMRX's shares have risen 42.2% year to date.

Amneal Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 32.82%.

Over the past 30 days, estimates for Precigen’s 2026 loss per share have improved from a loss of 2 cents to earnings of 25 cents. Over the same period, earnings estimates for 2027 have risen from 25 cents to 86 cents. PGEN's shares have increased 78% year to date.

Precigen’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 108.96%.

Over the past 30 days, estimates for AC Immune’s 2026 loss per share have narrowed from 84 cents to 60 cents. Over the same period, earnings estimates for 2027 remained unchanged at 17 cents. ACIU's shares have declined 15.6% year to date.

AC Immune’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 33.25%.

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

CAVA’s Price Performance, Valuation & Estimates

CAVA’s shares have gained 6.9% in the past year against the industry’s 6.9% decline. In the same time frame, other industry players like Dutch Bros Inc. BROS and McDonald's Corporation MCD have declined 21.8% and 14.1%, respectively.

CAVA’s One-Year Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, CAVA trades at a forward price-to-sales (P/S) multiple of 5, above the industry’s average of 3.12. Conversely, industry players, such as Dutch Bros and McDonald's, have P/S multiples of 3.49 and 6.55, respectively.

CAVA’s P/S Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CAVA’s 2026 earnings per share has declined in the past 60 days.

EPS Trend of CAVA Stock

Image Source: Zacks Investment Research

The company is likely to report flat earnings in 2026 on a year-over-year basis. Conversely, industry players such as McDonald’s and Dutch Bros are likely to witness an increase of 5.6% and 27.6%, respectively, year over year in 2026 earnings.

CAVA’s Zacks Rank

CAVA 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

With nearly eight million customers across the United States, the combined company will also have a stronger presence in the Northeast and a broader branch and service footprint. By bringing together Webster’s strong deposit base and commercial banking expertise with SAN’s existing U.S. banking businesses, the transaction expands the products and services available to customers. This broader platform can help deepen customer relationships, support loan growth and create additional cross-selling opportunities.

Webster’s Healthcare Financial Services business provides another avenue for growth, bringing specialized capabilities in a differentiated market to the enlarged platform. The business complements SAN’s broader commercial banking operations, which could help the combined company capture more business from existing customers while reaching new ones.

The broader platform also strengthens SAN’s ability to serve customers across its U.S. footprint and through digital channels. Its combined business spans Retail, Commercial, Auto, Wealth and Corporate & Investment Banking, allowing the company to address a wider range of financial needs across both retail and commercial customers.

The Webster transaction builds on SAN’s longer-term efforts to expand its U.S. franchise. In 2022, Santander completed the acquisition of Amherst Pierpont Securities, strengthening its U.S. Corporate & Investment Banking capabilities. In 2024, it launched Openbank in the United States, expanding its fully digital banking offering into a new market. The addition of Webster further strengthens this existing U.S. platform with a larger deposit base and deeper commercial banking capabilities.

From a financial perspective, the combination is expected to generate substantial cost synergies and improve profitability. SAN is targeting around $800 million in annual pre-tax cost synergies and expects earnings per share (EPS) accretion of around 7-8% by 2028. The transaction is also expected to support SAN’s objective of achieving approximately 18% return on tangible equity in the United States by 2028.

Overall, the completion of the Webster acquisition strengthens SAN’s position in the U.S. banking market, with the combined company now ranking among the top 10 retail and commercial banks in the United States by assets and among the top five by deposits in the Northeast. The enhanced scale, broader capabilities and stronger market position could support further growth and profitability for its U.S. franchise.

Similar Steps Taken by Other Financial Firms

Similar to Webster, other financial firms have been undertaking strategic initiatives to reshape their business mix, strengthen core operations and create new avenues for growth.

In August 2026, KeyCorp KEY completed the acquisition of Clearwater Corporate Finance LLP (Clearwater UK), a U.K.-based middle-market investment banking advisory firm. The deal strengthens KeyCorp’s M&A capabilities, expands Western European presence and enhances opportunities to serve U.S. and European corporate and private equity clients.

The acquisition builds on KeyCorp’s collaboration with Clearwater UK that began in 2020 and supports its strategy of expanding the investment banking franchise and growing fee-based businesses.

In the same month, Citigroup C agreed to acquire Kard Financial, a commerce media and rewards technology company, to strengthen its U.S. consumer banking and credit card franchise. The deal is expected to enhance Citigroup's personalized rewards and merchant-funded offers while deepening customer engagement through Kard’s technology and merchant relationships.

The acquisition supports Citigroup’s strategy of strengthening its cards business and expanding commerce media capabilities. It could also enhance customer engagement and create new merchant opportunities.

SAN’s Price Performance & Zacks Rank

Over the past six months, shares of Santander have gained 11.6%, outperforming the industry's 8.4% growth.

Image Source: Zacks Investment Research

At present, SAN 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

XMax’s Earnings Snapshot

XMax reported second-quarter 2026 net sales of $2.7 million, up 7.1% from $2.6 million a year earlier. Net income was $32.4 million, or 53 cents per share, against a net loss of $289,907, or 2 cents per share, in the prior-year quarter.

Residential and commercial furniture sales fell 35.9% to $1.6 million from $2.6 million, while the newly launched API-based services generated $1.1 million in revenues against none a year earlier.

The furniture segment recorded an operating income of $314,123, while the API-based services segment posted an operating loss of $605,816.

XMAX's Other Key Business Metrics

Gross profit decreased 15.1% to $1.1 million from $1.3 million, while gross margin contracted to 40% from 50%. Excluding API-based service revenues, however, gross margin improved to 73% from 50%, reflecting a greater mix of higher-margin furniture products.

Operating expenses rose 55.9% to $2.3 million from $1.5 million. Selling expenses declined 6% to $290,479, but general and administrative expenses jumped 72.3% to $2 million, primarily reflecting higher cloud service and filing fees. XMAX recorded an operating loss of $1.2 million compared with $196,494 a year earlier.

XMax ended June with $34.6 million in cash and cash equivalents, up from $6.7 million at the end of 2025. Total current assets increased to $46.9 million from $11.8 million. XMAX also reported working capital of $45.3 million as of June 30, 2026, compared with $9.4 million as of Dec. 31, 2025.

For the first six months of 2026, operating activities used $4.3 million of cash, compared with $230,104 a year earlier, while financing activities provided $45.3 million.

XMax’s Management Commentary

CEO Xiaohua Lu described the quarter as transformative, citing the launch of XMax's API platform and the generation of its first AI-related revenues. Management said that the company intends to build scalable AI software and platform-based services through XMax AI Inc. in the United States and Elonx AI Holdings PTE. LTD. in Singapore.

XMAX also highlighted service agreements with new customers as steps toward establishing its AI infrastructure and serving enterprises seeking to incorporate advanced AI capabilities into commercial applications.

Factors Influencing XMAX's Results

The sharp improvement in reported earnings was primarily investment-driven rather than the result of operating profitability. Other income totaled $41.5 million against an expense of $94,410 a year earlier, largely because XMax recognized a $42.1 million unrealized gain on its investment in Preamble Capital. The gain also resulted in $7.8 million of deferred income tax expense.

At the operating level, furniture demand remained under pressure. Management attributed lower furniture sales to challenging market conditions and tariffs, while the first contribution from API-based services helped consolidated revenues grow. The new AI services also weighed on the overall gross-margin profile because of their initial cost mix.

XMax’s Other Developments

XMax advanced a strategic expansion into AI during the period while retaining furniture as a principal business line. The company incorporated XMax AI Inc. in Nevada on April 1 and Elonx AI Holdings PTE. LTD. in Singapore on June 4. Both businesses focus on enterprise AI infrastructure and Model-as-a-Service solutions delivered through cloud-based inference APIs, with revenues based on customer compute usage.

The expansion represents a significant diversification of XMAX's operations, with management targeting areas including AI software, cloud and GPU compute infrastructure, model access and enterprise AI deployment while continuing to operate its established furniture business.

XMax also entered into a June 24 term sheet for a proposed joint venture transaction to acquire a 68% stake in a company that is owned by two professors for $4 million. The company paid a $500,000 deposit upon execution of the term sheet.

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

Inspire Medical reinforced this optimism with a stronger-than-expected second quarter. Although revenues declined 7.6% year over year to $200.6 million due to temporary coding disruptions, adjusted earnings per share (EPS) beat expectations, operating cash flow improved sharply, and the company raised its 2026 revenue, operating margin and adjusted EPS outlook. The launch of Project Horizon and growing adoption of Inspire V further strengthen its long-term growth outlook.

What Is Fueling INSP’s Growth?

Project Horizon Is Creating a Stronger Growth Engine: Inspire Medical launched Project Horizon to accelerate long-term revenue growth by improving patient flow and expanding access to therapy. The initiative is expected to create roughly $30 million in annualized investment capacity through organizational optimization and supply-chain efficiencies. Management plans to reinvest these savings into patient education, engagement and prior-authorization support, which should help drive growth beyond 2026.

Inspire V Adoption Continues to Strengthen: Inspire V remains a major growth catalyst for the company. The new system helped expand gross margin through a richer product mix, while management said it accounted for the majority of implants during the second quarter. The company also highlighted strong clinical data demonstrating the system's safety, efficacy and potential cardiovascular benefits, reinforcing its competitive positioning.

Reimbursement Clarity Is Supporting Recovery: The reimbursement environment is gradually becoming more favorable. Inspire Medical said C-codes are now in place, reimbursement rates remain intact and prior-authorization trends are improving as providers become more comfortable with updated billing processes. The company expects reimbursement-related headwinds to ease sequentially through the second half of 2026, providing a clearer path toward revenue recovery. 

A Large Untapped Market Supports Long-Term Expansion: Inspire Medical continues to target a significant untreated obstructive sleep apnea population. Management believes growing clinical evidence, expanding physician education and broader international adoption can support future growth. The company is also working to expand surgeon capacity and simplify patient screening through the PREDICTOR study, which could reduce diagnostic hurdles and improve access to therapy.

Image Source: Zacks Investment Research

INSP’s Estimates

The Zacks Consensus Estimate for INSP’s 2026 and 2027 EPS implies a year-over-year decline of 48.8% and growth of 22.7%, respectively, to $1.24 and $1.52. In the past 60 days, the consensus mark for the company's 2026 EPS has improved by 31 cents.

Revenues for 2026 are projected to decline 6.7% to $851.2 million and improve 4.4% to $888.4 million in 2027.

Risks and Challenges

Inspire Medical’s recovery still depends heavily on execution. Coding and reimbursement disruptions continue to weigh on U.S. procedure volumes, and management expects these issues to remain a headwind through the second half of 2026. While prior-authorization trends are improving, the pace of recovery remains uncertain.

The company is also investing aggressively through Project Horizon, and the benefits may take time to materialize. In addition, future reimbursement decisions, including the proposed CPT code process and Medicare payment updates, remain important variables for the long-term growth outlook.

Inspire Medical Systems, Inc. Price

Inspire Medical Systems, Inc. price | Inspire Medical Systems, Inc. Quote

Conclusion

INSP’s recent rally reflects growing confidence that its temporary reimbursement challenges are becoming more manageable. Stronger-than-expected profitability, improving cash generation, growing Inspire V adoption and Project Horizon's growth investments provide a solid foundation for future expansion. The company's raised 2026 outlook and improving reimbursement trends further strengthen the long-term investment case.

While coding-related disruptions and reimbursement decisions remain important watch points, Inspire Medical’s expanding clinical evidence, operational discipline and large untapped sleep apnea market position it well for sustained long-term growth. Backed by a Zacks Rank #1 (Strong Buy), the stock appears well-positioned for investors seeking exposure to an innovative medical technology leader.

Other Stocks to Consider

Some other top-ranked stocks from the broader medical space are Globus Medical GMED, West Pharmaceutical WST and The Cooper Companies COO.

Globus Medical, currently sporting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.

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

NCLH’s Price Performance, Valuation & Estimates

Shares of Norwegian Cruise have declined 28.3% in the past year compared with the industry’s 0.3% fall. In the same time frame, other industry players like Royal Caribbean Cruises Ltd. RCL and Carnival Corporation & plc CCL have declined 11.5% and 13.3%, respectively.

NCLH One-Year Price Performance

Image Source: Zacks Investment Research

NCLH stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 10.86, well below the industry average of 17.52. Industry players, such as Royal Caribbean and Carnival have P/E ratios of 14.92 and 10.18, respectively.

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

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Norwegian Cruise’s 2026 earnings per share has declined in the past 30 days.

EPS Trend of NCLH Stock

Image Source: Zacks Investment Research

The company is likely to report dismal earnings, with projections indicating an 24.2% fall in 2026. Conversely, industry players like Royal Caribbean are likely to witness an increase of 13.7%, year over year, in 2026 earnings. Meanwhile, Carnival’s 2026 earnings are likely to witness a fall of 0.9% year over year.

NCLH’s Zacks Rank

NCLH stock currently 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

Precipio’s Earnings Snapshot

Precipio reported second-quarter 2026 net sales of $7 million, up 24.7% from $5.7 million a year earlier. The company swung to a net loss of $219,000, or 12 cents per share, from net income of $74,000, or 5 cents per share, in the prior-year quarter.

Service revenues, net of the allowance for credit losses, increased 21.6% to $6.1 million from $5 million, aided by higher diagnostic case volumes. Product revenues jumped 45.2% to $906,000 from $624,000.

Precipio operates as a single reporting segment encompassing its pathology services and product divisions.

PRPO’s Other Key Business Metrics

Gross profit increased 29.1% year over year to $3.1 million from $2.4 million, while gross margin expanded to 45% from 43%. The improvement reflected higher case volumes and revenues. Precipio processed 4,652 diagnostic cases during the quarter, up 26% from 3,692 cases in the year-ago period.

Cost of sales increased 20.5%, reflecting higher reagent, operating-supply, personnel and pathologist interpretation costs associated with the greater case volume.

Adjusted EBITDA was $0.4 million against an adjusted EBITDA loss of $0.1 million a year earlier. On a sequential basis, adjusted EBITDA improved from a loss of $0.2 million in the first quarter.

Cash generation also improved. Management said PRPO generated $0.7 million of operating cash flow during the quarter, while cash increased to $3.1 million. The cash balance compared with roughly $1.1 million at the end of the second quarter of 2025.

Precipio’s Management Commentary

CEO Ilan Danieli characterized the quarter as validation of Precipio’s operating model, pointing to record quarterly revenue, positive adjusted EBITDA and internally generated cash. Management emphasized that the increase in cash was achieved without raising capital.

The product business was a particular focus. Product revenues of $0.9 million were 21% above the company’s previous quarterly record of $750,000 set in the fourth quarter of 2025.

During second-quarter 2026, the commercial team added about 10 distributor representatives, identified more than 25 new qualified customers and had more than 30 meetings either scheduled or completed with those prospects.

Factors Influencing PRPO’s Results

Higher diagnostic activity was a key revenue driver, with the 26% increase in cases supporting growth in service revenues. At the same time, higher volumes increased costs for reagents, operating supplies, personnel and pathologist interpretation, pushing total cost of sales higher.

Operating expenses increased 14.8% year over year. General and administrative expenses rose $0.1 million, mainly on higher legal and professional fees, while sales and marketing expenses increased $0.1 million because of personnel costs associated with new product-division sales hires. Stock-based compensation increased $0.3 million. Other income totaled $380,000 (including $389,000 of Employee Retention Credit income), down from total other income of $898,000 a year earlier.

Precipio’s Outlook

Management did not provide specific revenue or earnings targets for the second half of 2026 but expects continued revenue and product revenue growth. PRPO plans to expand its customer base and commercial reach and expects more opportunities in its product pipeline to convert into active accounts and revenue.

Management also intends to focus on operating leverage, with revenue growth translating into adjusted EBITDA and ultimately cash generation.

PRPO’s Other Developments

In May 2026, Precipio entered into a five-year loan agreement to finance laboratory equipment. The $300,000 loan is secured by the equipment and carries monthly interest at 8.9%.

PRPO did not disclose any acquisitions, divestitures or significant business restructuring during the quarter.

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

Wabtec Q2 Earnings Beat Estimates

Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion. Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%. Growth across Freight and Transit, supported by acquisitions and organic expansion, drove the top line. The 12-month backlog increased 11.3% to $9.14 billion.

WAB's Freight Segment Drives Broad-Based Growth

Freight segment revenues increased 16.9% year over year to $2.24 billion. Equipment sales rose 35% to $737 million on higher locomotive deliveries, while Digital Intelligence sales surged 88.5% to $360 million, aided by the acquisitions of Inspection Technologies and Frauscher Sensor Technologies.

Services revenues declined 4.2% to $748 million because of lower modernization deliveries, as expected. Components revenues were nearly flat at $398 million. Freight-adjusted operating margin improved 80 basis points to 25.8%, reflecting better gross margins despite higher operating expenses as a percentage of sales.

Wabtec's Transit Business Posts Margin Expansion

Transit segment revenues rose 18.9% to $936 million. The increase reflected the Dellner Couplers acquisition, higher original equipment and aftermarket sales and favorable foreign currency movements. On a constant-currency basis, segment sales advanced 17.7%.

Original equipment revenues grew to $411 million from $353 million, while aftermarket revenues increased to $525 million from $434 million. Adjusted operating margin expanded 250 basis points to 17.7%, supported by improved gross profitability.

WAB Benefits From Acquisition and Organic Gains

Acquisitions contributed $232 million to second-quarter sales growth, including $163 million in Freight and $69 million in Transit. Organic growth added another $229 million, split between $158 million in Freight and $71 million in Transit.

Favorable foreign exchange contributed $24 million, while portfolio optimization actions reduced revenues by $12 million. The mix shows that Wabtec’s growth was not solely acquisition-driven, as underlying demand also made a meaningful contribution.

Wabtec Expands Consolidated Profitability

Adjusted gross margin increased 190 basis points to 36.7%, while adjusted operating margin improved 80 basis points to 21.9%. Robust sales growth and stronger gross margins supported profitability across the organization.

WAB's Backlog Supports Revenue Visibility

Total backlog reached $30.93 billion as of June 30, 2026, up 41.7% from $21.83 billion a year earlier. Freight backlog increased to $25.33 billion, while Transit backlog rose to $5.60 billion.

The 12-month backlog grew by $930 million year over year. Freight accounted for $6.64 billion of the near-term backlog, while Transit represented $2.50 billion. This order coverage provides visibility into production and service activity across both core businesses.

Wabtec Generates Stronger Operating Cash Flow

Cash from operations increased to $441 million from $209 million in the prior-year quarter. Operating cash flow conversion improved to 82% from 46%, aided by higher net income and favorable working-capital movements.

Wabtec ended the quarter with $670 million in cash, cash equivalents and restricted cash. Total available liquidity was $2.02 billion, including $1.36 billion available under existing credit facilities. Total debt stood at $6.57 billion, including $4.92 billion of long-term debt.

During the reported quarter, Wabtec repurchased $215 million of shares and paid $53 million in dividends.

Outlook Raised

Apart from the better-than-expected results, Wabtec has raised its full-year 2026 guidance. The company raised its 2026 adjusted earnings guidance to $10.60-$10.90 per share from the previous $10.25-$10.65 range. The midpoint increased by 30 cents and represents expected year-over-year growth of approximately 19.9%.  The company also raised its 2026 revenue guidance to a range of $12.30-$12.60 billion from the prior view of $12.19-$12.49 billion. The midpoint rose by $110 million and implies growth of approximately 11.5% from 2025. 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Wabtec has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the fifth quintile for this investment strategy.

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

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Wabtec has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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

WEX Q2 Earnings Beat Estimates

WEX reported impressive second-quarter 2026 results, with earnings and revenues beating the respective Zacks Consensus Estimates.

WEX’s adjusted earnings (excluding $2.24 from non-recurring items) were $5.35 per share, which surpassed the Zacks Consensus Estimate by 5.3% and increased 35.4% year over year. Revenues were $753.5 million, topping the Consensus Estimate by 1.8% and rising 14.2% year over year.

Higher fuel prices, solid execution across the business and broad-based segment growth drove these positive results. Total volume across all segments increased 15.7% year over year to $68.9 billion, highlighting continued customer activity.

Segments Drive Revenue Growth

The Mobility segment remained WEX's largest contributor, generating $422.4 million in revenues, up 22.0% from the prior-year quarter. Management attributed much of the outperformance to higher U.S. fuel prices, while payment processing transactions edged up 0.1% to 139.3 million.

The Benefits segment generated $206.0 million in revenues, increasing 5.6% year over year. Average Software-as-a-Service accounts rose 2.2% to 21.7 million, while average HSA custodial cash assets climbed 11.1% to $5.2 billion.

Corporate Payments revenues increased 5.8% to $125.1 million. Purchase volume declined 3.6% to $19.8 billion, although total volume processed increased 4.5% to $38.6 billion.

Margin Expansion Supports Earnings Growth

GAAP net income increased to $3.11 per diluted share, up 57.1% year over year. Adjusted operating income margin expanded to 39.6% from 36.8% in the year-ago quarter, while GAAP operating margin improved to 27.0% from 23.8%.

Management noted that higher fuel prices contributed meaningfully to revenues and earnings outperformance. Excluding the impacts of fuel prices and foreign exchange, revenue grew 4.2%, while adjusted earnings per share increased 10.1%, reflecting solid underlying execution.

The company highlighted progress across its strategic initiatives, including AI-driven productivity improvements, pricing actions within Mobility and continued momentum in Corporate Payments and Benefits.

Cash Flow, Leverage Improve

WEX ended the quarter with a leverage ratio of 2.9X, improving from 3.1X at the end of the first quarter.

Net cash used in operating activities totaled $77.6 million, compared with $264.6 million in operating cash provided in the prior-year quarter, primarily reflecting higher receivable balances associated with elevated domestic fuel prices. Adjusted free cash flow improved to $219.0 million from $194.3 million a year earlier.

The company repurchased approximately $60 million of shares during the second quarter, with an additional $33 million repurchased through July 20. Management indicated that most of the adjusted free cash flow will be directed toward share repurchases in the near term.

WEX’s Q3 & Full Year 2026 Outlook

For the third quarter of 2026, WEX expects revenues to be in the range of $733 million to $753 million. Adjusted earnings are expected to be $5.45-$5.65 per diluted share.

The company raised its full-year 2026 guidance to $2.86 billion-$2.90 billion, up from the previous outlook of $2.82 billion-$2.88 billion.

Adjusted earnings are projected to be in the range of $19.68-$20.08 per diluted share, compared with the earlier forecast of $18.95-$19.55.

The updated guidance assumes average U.S. retail fuel prices of $3.91 per gallon for full-year 2026 and does not include any potential future impacts from European fuel spreads. Management said strong fuel prices, resilient demand across all three operating segments and disciplined capital allocation supported the improved outlook.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

At this time, Wex has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Wex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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

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

Waste Connections Beats on Q2 Earnings

Waste Connections reported impressive second-quarter 2026 results, wherein earnings and revenues outpaced the Zacks Consensus Estimates.

WCN reported second-quarter 2026 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.35 by 11.1%. Earnings increased 16.3% from $1.29 in the year-ago quarter.

Revenues of $2.56 billion surpassed the consensus estimate of $2.53 billion by 1.1% and rose 6.4% year over year. Strong pricing and operational execution supported the results, although solid waste unit volumes declined 1.9%.

WCN's Solid Waste Trends

Solid waste internal growth was 3.6% in the quarter. Core price increased 5.6%, while yield, which reflects the average price per unit of service after customer and business-mix changes, improved 4.6%. Fuel and material surcharges contributed 1.1%.

Unit volumes fell 1.9%, reflecting sluggish construction activity and customer churn related partly to fuel surcharges. Roll-off pulls declined 2%, while rates per pull rose 5%. Landfill tons were nearly flat, as a 1% increase in construction and demolition volumes offset weaker special waste activity.

Waste Connections' Segmental Revenues

Solid Waste Collection revenues increased 5.8% year over year to $1.78 billion. Solid Waste Disposal and Transfer revenues advanced 5.1% to $464.3 million. These businesses benefited from pricing, while softer volumes limited organic growth.

Solid Waste Recycling revenues declined 8.1% to $61.4 million due to lower commodity values. E&P Waste Treatment, Recovery and Disposal revenues surged 18.3% to $201 million. Intermodal and Other revenues rose 18.3% to $51.3 million.

WCN's Margin & Cost Picture

Adjusted EBITDA increased 6.8% year over year to $840.1 million. The adjusted EBITDA margin expanded 10 basis points to 32.8%. Underlying margin expansion was 70 basis points, driven partly by improved employee retention, safety performance and lower risk-management costs.

Fuel costs reduced the margin by approximately 40 basis points, while lower commodity values created a 20-basis-point drag. Management expects full-year core pricing of at least 5.5% and anticipates recovering elevated fuel expenses over time through surcharges.

Operating expenses increased 6.2% to $1.48 billion. Selling, general and administrative expenses rose 7.2% to $260.5 million. Reported operating income declined 4.8% to $437.6 million, reflecting $58.5 million in impairments and other operating items.

Waste Connections' Cash Flow & Balance Sheet

Net cash provided by operating activities totaled $733.3 million in the quarter compared with $638.2 million a year earlier. The adjusted free cash flow increased 24.7% to $457.5 million, representing 17.9% of revenues.

For the first six months of 2026, capital expenditure was $598.9 million. WCN also spent $614.5 million in share repurchases and $177.1 million in dividends. The company ended June with $98.2 million in cash and equivalents, and $9.28 billion in long-term debt.

Waste Connections' Growth Investments

The company completed acquisitions representing approximately $100 million in annualized revenues during the first half. Another $30 million of exclusive-market franchise transactions was expected to close shortly, while management continued to anticipate an above-average acquisition year.

WCN’s artificial intelligence pricing tool has generated roughly $20 million in annualized EBITDA benefits. Management is also testing AI-based routing technology and developing customer-service tools. Across seven programs, Waste Connections expects its $100-million AI investment to ultimately produce $100 million in EBITDA improvement as implementation progresses through 2028 and 2029.

WCN’s 2026 Outlook

Waste Connections raised its 2026 revenue outlook to $10.02-$10.05 billion. Adjusted EBITDA is projected between $3.33 billion and $3.34 billion, implying a margin of 33.2% to 33.3%.

The company maintained its adjusted free cash flow forecast of $1.4 billion to $1.45 billion, and capital expenditure projection of $1.25 billion. The outlook excludes acquisitions that may close during the remainder of the year.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

At this time, Waste Connections has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

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

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

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

TE Connectivity Q3 Earnings Beat Estimates, Revenues Increase Y/Y

TE Connectivity reported third-quarter fiscal 2026 adjusted earnings of $2.94 per share, up 22% year over year. The figure beat the Zacks Consensus Estimate of $2.85 by 3.2%.

Net sales increased 14% year over year to $5.16 billion and surpassed the Zacks Consensus estimate by 3.14%. Growth across both the Industrial and Transportation segments supported performance. Orders reached a record $5.7 billion, rising 27% year over year.

TEL’s Q3 Top-Line Details

Transportation Solutions generated revenues of $2.58 billion, accounting for half of total sales. Segment revenues increased 7% on a reported basis and 5% organically from the year-ago quarter.

Industrial Solutions also recorded revenues of $2.58 billion, representing the remaining half of sales. The figure climbed 22% year over year on a reported basis and 21% organically, reflecting broad-based demand across most of its businesses.

TE Connectivity’s Segment Performance

Within Transportation Solutions, Automotive sales rose 5% to $1.91 billion, including 3% organic growth, supported by content outperformance in Asia and Europe. Commercial Transportation revenues advanced 20% to $434 million and increased 18% organically on strong content growth across all regions.

Sensor’s revenues declined 1% to $233 million and fell 3% organically. The segment's adjusted operating income increased to $541 million from $486 million, while adjusted operating margin expanded 90 basis points to 21%.

TEL’s Industrial Businesses Maintain Momentum

Digital Data Networks revenues surged 34% to $813 million on both a reported and organic basis, aided by continued momentum in artificial intelligence applications. Management indicated that orders support another strong sequential sales increase for the business in the fourth quarter.

Energy sales increased 34% to $516 million, including 33% organic growth, driven by grid-hardening activity and data-center construction. Automation and Connected Living revenues rose 16% to $664 million, while Aerospace, Defense and Marine sales advanced 12% to $419 million. Medical revenues decreased 7% to $168 million. The segment's adjusted operating income increased to $588 million from $467 million, while adjusted operating margin expanded 70 basis points to 22.8%.

TE Connectivity's Q3 Operating Details

In third-quarter fiscal 2026, GAAP gross margin expanded 26 basis points (bps) year over year to 35.6%.

Selling, general and administrative expenses increased to $532 million from $491 million. Research, development and engineering expenses rose to $230 million from $211 million. 

GAAP operating income increased to $981 million from $857 million. Operating margin edged up 10 bps to 19%. Adjusted operating income rose to $1.13 billion from $953 million, while adjusted operating margin expanded 90 bps to 21.9%.

TEL’s Cash Flow and Balance Sheet

As of June 26, 2026, cash and cash equivalents totaled $1.24 billion. Total debt was $5.63 billion. 

TE Connectivity generated $1.19 billion in cash from operating activities during the quarter, nearly unchanged from the prior-year period. Free cash flow declined to $883 million from $962 million.

TEL repurchased $529 million of shares and paid $226 million in dividends during the quarter.

TE Connectivity's Positive Q4 Guidance

For the fourth quarter of fiscal 2026, TE Connectivity expects sales of approximately $5.25 billion, indicating 11% growth on both a reported and organic basis. Adjusted earnings are projected to be approximately $3.05 per share, representing an 18% year-over-year increase.

TEL also agreed to acquire Astrodyne TDI for approximately $1.4 billion. The business is expected to contribute annual sales of more than $250 million and expand the company's power-management portfolio within Industrial Solutions.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, TE Connectivity has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise TE Connectivity has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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

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

United Rentals Q2 Earnings Beat on Rental Growth, '26 Guidance Raised

United Rentals reported solid second-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year.

Record rental revenues, higher fleet productivity and robust specialty demand supported the results. Fleet productivity improved 3.4% year over year.

URI's Q2 Earnings & Revenues

URI posted adjusted earnings of $12.76 per share, up 21.9% from $10.47 a year ago and surpassing the Zacks Consensus Estimate of $11.67 by 9.3%.

Total revenues advanced 11.8% to $4.41 billion and topped the consensus mark of $4.24 billion by 4.1%.

URI’s Rental Revenues Reach a Quarterly Record

Rental revenues increased 12.7% year over year to a quarterly record of $3.85 billion. Average original equipment at cost, or OEC, rose 7.1%. 

Owned equipment rental revenues increased 9% to $2.99 billion from $2.75 billion. Re-rent revenues rose 46.7% to $88 million, while ancillary and other rental revenues advanced 26.2% to $770 million.

Sales of rental equipment increased 4.1% to $330 million. Sales of new equipment rose 14.7% to $86 million, contractor supplies sales increased 7.3% to $44 million and service and other revenues grew 6.3% to $101 million.

United Rentals Sees Specialty Growth Accelerate

General Rentals segment equipment rental revenues increased 6.6% year over year to $2.42 billion. Equipment rental gross profit rose 8.7% to $865 million, while gross margin expanded 70 basis points to 35.8%.

Specialty segment equipment rental revenues rose 24.8% to $1.43 billion. Gross profit increased 21.1% to $636 million, but gross margin contracted 140 basis points to 44.4%. The decline reflected a revenue mix shift toward lower-margin ancillary and re-rent revenues, partly offset by lower labor and benefit expenses as a percentage of revenues.

United Rentals' Profitability Improves

Gross profit increased to $1.73 billion from $1.53 billion. The gross margin improved to 39.3% from 38.9%, as revenue growth outpaced the increase in cost of revenues.

Adjusted EBITDA rose 13.6% to a quarterly record of $2.06 billion. The adjusted EBITDA margin expanded 70 basis points to 46.6%, including a $49 million gain from the sale of part of the scaffolding business. Excluding that gain, the margin declined 40 basis points due mainly to the Specialty Rentals mix pressure.

Net income increased 21.1% to a second-quarter record of $753 million. Net income margin expanded 130 basis points to 17.1%, including a $37 million after-tax benefit from the scaffolding transaction.

United Rentals Maintains Financial Flexibility

For the first six months of 2026, net cash provided by operating activities increased 20.1% to $3.31 billion. Free cash flow declined 4.1% to $1.15 billion, including restructuring-related payments and gross rental equipment purchases of $2.72 billion.

URI ended June with liquidity of $3 billion, including $112 million in cash and equivalents. Its net leverage ratio improved to 1.8x from 1.9x at the end of 2025.

The company returned $998 million to its shareholders during the first half of 2026, comprising $750 million in share repurchases and $248 million in dividends. United Rentals expects to repurchase $1.5 billion of shares in 2026 and declared a quarterly dividend of $1.97 per share.

URI Raises Key 2026 Guidance Ranges

Management raised its 2026 revenue outlook to $17.5-$17.8 billion from $16.9-$17.4 billion. The adjusted EBITDA forecast increased to $7.98-$8.13 billion from $7.63-$7.88 billion.

United Rentals now expects net cash provided by operating activities of $5.85-$6.65 billion, compared with the prior projection of $5.4-$6.2 billion. The free cash flow outlook, excluding restructuring-related payments, was maintained at $2.15-$2.45 billion.

Net rental capital expenditures are projected at $3.4-$3.8 billion after gross purchases of $4.85-$5.25 billion. Management cited large-project activity, customer backlogs and year-to-date momentum as factors supporting the higher outlook.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, United Rentals has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise United Rentals has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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

Texas Instruments Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Texas Instruments reported second-quarter 2026 earnings of $2.14 per share, which increased 52% year over year. The bottom line beat the Zacks Consensus Estimate by 12%.

TXN posted revenues of $5.46 billion, which rose 23% from the year-ago quarter. The top line surpassed the consensus mark by 4.6%, driven by strength in industrial, data center and automotive markets.

TXN’s Segment Mix Highlights Broad-Based Growth

Texas Instruments’ second-quarter results reflected strength across its two core operating segments.

Analog revenues came in at $4.37 billion (79.9% of total revenues), which grew 26% from the year-ago quarter, underscoring improving demand conditions across key end markets. The figure came above our model estimate of $4.08 billion.

Embedded Processing revenues totaled $788 million (14.4% of total revenues), reflecting 16.1% year-over-year growth. The figure missed our model estimate of $799.1 million.

The Other segment generated $310 million of revenues (5.7% of total revenues), which declined 2.2% from the prior-year period. The figure missed our model estimate of $328.5 million.

Texas Instruments Expands Operating Leverage

Texas Instruments’ gross profit increased 30% year over year to $3.35 billion. Gross margin of 61.4% expanded 350 basis points (bps) year over year.

Selling, general and administrative (SG&A) expenses increased 1% year over year to $490 million. As a percentage of revenues, SG&A expenses contracted 190 bps year over year to 9%.

Research and development expenses increased 1.5% year over year to $535 million. As a percentage of revenues, it decreased 210 bps year over year to 9.8%.

Operating profit rose 47.8% year over year to $2.31 billion. The operating margin was 42.3%, which expanded 710 bps from the prior-year quarter’s number.

TXN Cash Generation Supports Shareholder Returns

As of June 30, 2026, the cash and short-term investment balance was $7 billion, up from $5.1 billion as of March 31, 2026.

At the end of the reported quarter, TXN’s long-term debt was $12.903 billion compared with $12.901 billion in the previous quarter.

Texas Instruments generated an operating cash flow of approximately $2.7 billion in the second quarter. During the second quarter, it repurchased stocks worth $27 million and paid $1.295 billion in dividends.

Texas Instruments Initiates Guidance for Q3 2026

Management’s outlook calls for third-quarter 2026 revenues in the range of $5.65-$6.15 billion.

The company expects an effective tax rate of about 13% in the third quarter. Texas Instruments expects earnings per share between $2.23 and $2.57.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 14.26% due to these changes.

VGM Scores

At this time, Texas Instruments has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Texas Instruments has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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

Tesla Q1 Earnings Miss

Tesla reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%.

Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Record second-quarter vehicle deliveries and growth across the energy and services businesses supported the top line. Deliveries increased 25% to 480,126 vehicles.

Revenue Growth Broadens Across Businesses

Automotive revenues rose 23% year over year to $20.52 billion. Automotive sales increased to $20.01 billion from $15.79 billion, while leasing revenues declined to $364 million from $435 million. Regulatory credit revenues fell sharply to $146 million from $439 million.

Energy Generation and Storage revenues grew 13% to $3.14 billion. Services and Other revenues jumped 50% to $4.58 billion, reflecting higher activity across used vehicles, Supercharging, service centers and insurance. Higher Full Self-Driving subscriptions also aided automotive ancillary sales.

Deliveries Set Record

Tesla produced 451,758 vehicles, up 10% from the prior-year quarter. Model 3/Y production increased 12% to 442,936 units, while production of other models declined 34% to 8,822 units.

Model 3/Y deliveries rose 25% to 467,762 vehicles, while other-model deliveries increased 19% to 12,364 units. Global vehicle inventory improved to 15 days of supply from 24 days a year earlier. The company exited the quarter with its largest order backlog since 2023.

Software and Energy Metrics Gain Momentum

Active paid FSD subscriptions increased 56% year over year to 1.48 million. Tesla achieved record FSD subscription additions and more than 55% of its North American deliveries included an FSD subscription at the time of purchase.

Energy storage deployments climbed 41% to 13.5 GWh, marking Tesla’s second-highest quarterly deployment volume. The company also expanded its charging network to 8,704 Supercharger stations and 82,357 connectors, representing increases of 18% and 17%, respectively.

Margins Contract as Expenses Climb

Gross profit rose 23% to $4.75 billion, but the GAAP gross margin contracted 41 basis points to 16.8%. Operating expenses surged 47% to $4.35 billion, driven by research and development spending related to AI, Cybercab, Optimus and Tesla Semi, as well as higher stock-based compensation and selling and administrative costs.

Operating income declined 57% to $398 million, reducing the operating margin to 1.4% from 4.1%. Automotive gross margin excluding regulatory credits was 16.3% compared with 15% a year earlier and 19.2% in the preceding quarter.

Energy gross margin fell to 20.4%, partly due to a roughly $240 million warranty charge tied to vendor battery-cell issues and the absence of prior-quarter tariff benefits. Services and Other gross margin improved sequentially to a record 14.1%, supported by higher volumes and better fleet cost management.

Cash Flow Reflects Heavy Investment

Net cash provided by operating activities increased 85% to $4.70 billion. However, capital expenditures more than doubled to $5.79 billion from $2.39 billion, resulting in negative free cash flow of $1.09 billion.

As of June 30, 2026, cash, cash equivalents and short-term investments totaled $43.52 billion, up 18% year over year but down $1.22 billion sequentially. Long-term debt and finance leases, excluding the current portion, were $7.92 billion.

Outlook Prioritizes AI and New Products

Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. Planned investments include Robotaxi fleet expansion, Optimus production capacity, semiconductor manufacturing, solar production and AI computing infrastructure.

Cybercab production has begun at Gigafactory Texas, while Tesla Semi and Megapack 3 remain scheduled to enter production in 2026. The company is installing first-generation Optimus production lines and expanding Robotaxi operations.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -24.42% due to these changes.

VGM Scores

At this time, Tesla has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

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

Outlook

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

Performance of an Industry Player

Tesla belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, General Motors (GM), has gained 6.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

General Motors reported revenues of $48.03 billion in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $3.57 for the same period compares with $2.53 a year ago.

General Motors is expected to post earnings of $3.37 per share for the current quarter, representing a year-over-year change of +20.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for General Motors. Also, the stock has a VGM Score of A.

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

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

SEI Investments Beats on Q2 Earnings as Revenues & AUM Rise Y/Y

SEI Investments’ second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter.

Results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport.

Results excluded certain non-recurring items. After considering these, net income attributable to SEI Investments was $195.7 million, down 13.8% from the year-ago quarter.

Revenues & AUM Improve, Expenses Rise

Total quarterly revenues were $641.6 million, up 14.7% year over year. The rise was driven by higher asset management, administration and distribution fees, as well as information processing and software servicing fees. The top line beat the Zacks Consensus Estimate of $637.9 million.

Total expenses were $444.6 million, up 8.2% year over year. The increase was due to a rise in almost all cost components, except for consulting, outsourcing and professional fees, facilities, supplies and other costs, and depreciation charges.

Operating income (GAAP) rose 33% year over year to $197 million.

As of June 30, 2026, AUM was $606.7 billion, reflecting a rise of 17.2% from the prior-year quarter. Client assets under administration (AUA) were $1.36 trillion, up 19.7%. Client AUA did not include $14.3 billion related to Funds of Funds assets reported as of June 30, 2026.

Share Repurchase Update

In the reported quarter, the company bought back 1.3 million shares for $112.4 million at an average price of $86.92 per share.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

Currently, SEI has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

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

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, SEI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

SEI is part of the Zacks Financial - Investment Management industry. Over the past month, BlackRock (BLK), a stock from the same industry, has gained 9.9%. The company reported its results for the quarter ended June 2026 more than a month ago.

BlackRock reported revenues of $7.08 billion in the last reported quarter, representing a year-over-year change of +30.6%. EPS of $13.91 for the same period compares with $12.05 a year ago.

For the current quarter, BlackRock is expected to post earnings of $14.24 per share, indicating a change of +23.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.

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

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

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

Teledyne's Q2 Earnings & Revenues Beat Estimates, '26 EPS View Raised

Teledyne Technologies Inc. reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.

Including one-time items, the company recorded GAAP earnings of $5.37 per share, up 21.6% from the prior-year period’s earnings of $4.43.

The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the second quarter than the year-ago quarter’s reported actuals.

Operational Highlights of TDY

Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter. This improvement was driven by higher year-over-year sales across all business segments.

TDY’s Segmental Performance

Instrumentation: Sales in this segment increased 5.5% year over year to $387.8 million, driven by higher sales of marine instrumentation, primarily due to stronger offshore energy and defense markets.

The adjusted operating income declined 0.1% year over year to $104.8 million.

Digital Imaging: Quarterly sales in this division increased 12.7% year over year to $868.7 million. The segment benefited from higher sales of infrared imaging detectors, components and subsystems for defense and commercial applications. Surveillance systems, industrial and scientific imaging systems, and X-ray products also contributed to the growth.

The adjusted operating income rose 31.2% year over year to $217.6 million.

Aerospace and Defense Electronics: Sales in this segment totaled $286.4 million, up 8.2% from the prior-year quarter. The improvement was driven by higher sales of defense electronics and aerospace electronics.

The adjusted operating income increased 8.6% year over year to $79.7 million.

Engineered Systems: Revenues in this division jumped 8.4% year over year to $119.6 million due to higher sales of engineered products and energy systems.

This segment's operating income rose 24.8% to $15.1 million.

Financial Condition of TDY

Teledyne’s cash and cash equivalents totaled $340.1 million as of June 28, 2026 compared with $352.4 million as of Dec. 28, 2025.

Its long-term debt was $2.027 billion at the end of the second quarter of 2026 compared with $2.025 billion as of Dec. 28, 2025.

Cash flow from operating activities totaled $315.2 million during the first six months of 2026 compared with $226.6 million in the same period last year.

TDY generated free cash flow of $284.7 million, up from $196.3 million in the prior-year quarter.

Teledyne Raises 2026 Earnings View

For the third quarter of 2026, Teledyne expects adjusted earnings between $6.05 and $6.15 per share. The Zacks Consensus Estimate for TDY’s third-quarter earnings is pegged at $5.90, which is lower than the company's guided range.

For full-year 2026, Teledyne raised its adjusted earnings outlook to $24.45-$24.65 per share from the previous range of $23.85-$24.15. The Zacks Consensus Estimate for earnings is pegged at $24.10, which is lower than the company's guided range.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

Currently, Teledyne has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Teledyne has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Teledyne belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, AAR (AIR), has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended May 2026.

AAR reported revenues of $928 million in the last reported quarter, representing a year-over-year change of +23%. EPS of $1.53 for the same period compares with $1.16 a year ago.

AAR is expected to post break-even earnings per share for the current quarter, representing a year-over-year change of 0%. Over the last 30 days, the Zacks Consensus Estimate has changed 0%.

AAR has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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 investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is AT&T due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

AT&T Surpasses Q2 Earnings Estimates on Fiber & Wireless Growth

AT&T reported relatively modest second-quarter 2026 results with adjusted earnings of 65 cents per share, up 20.4% year over year and above the Zacks Consensus Estimate of 59 cents by 10.2%. Revenues increased 2.3% to $31.56 billion but missed the consensus mark of $32.04 billion by 1.5%.

Results benefited from higher fiber and wireless revenues and improving profitability. AT&T added more than 1 million Advanced Connectivity customers, including 646,000 Internet net additions and 432,000 postpaid phone net additions. 

T Gains from Advanced Connectivity Momentum

Advanced Connectivity revenues rose 4.1% year over year to $28.62 billion. Service revenues increased 5.1% to $23.48 billion, supported by growth across Wireless, Advanced Home Internet and Business Fiber offerings.

Operating income for the segment surged 20.3% to $7.35 billion, while EBITDA advanced 8% to $12.03 billion. The EBITDA margin expanded 150 basis points to 42%, reflecting stronger service revenue and lower depreciation expense. 

AT&T Posts Strong Internet Customer Growth

Advanced home Internet revenues jumped 27.3% year over year to $2.93 billion. Business Fiber and Advanced Connectivity revenues increased 10% to $1.95 billion, partly offset by a 16.6% decline in Business Transitional and Other revenues.

AT&T recorded 367,000 fiber net additions and 279,000 fixed wireless net additions. Fiber connections rose 22.8% year over year to 12.87 million, while fixed wireless connections climbed 77.4% to 2.61 million. The company reached 38.6 million consumer and business locations with fiber and remained on track to exceed 40 million by year-end. 

T Benefits from Wireless Subscriber Expansion

Wireless service revenues increased 3.3% year over year to $17.41 billion. Growth was driven by higher retail wireless subscribers, expansion in converged accounts and pricing actions, partly offset by promotional discounts associated with subscriber additions.

Postpaid phone net additions totaled 432,000, up from 401,000 in the year-ago quarter. Postpaid phone churn improved one basis point to 0.86%. The Advanced Home Internet convergence rate reached 42.5%, indicating that a growing share of Internet customers also subscribed to AT&T wireless services.

AT&T Navigates Legacy Declines and Mexico Costs

Legacy segment revenues fell 25.9% year over year to $1.63 billion as demand for copper-based services continued to decline. Operating income plunged 45.5% to $523 million, while the operating margin contracted 1,160 basis points to 32%.

Latin America revenues rose 16.1% to $1.22 billion, aided by favorable foreign exchange rates and postpaid subscriber growth. However, operating expenses increased 17.7%, causing operating income to decline 17.4% to $38 million. Segment EBITDA increased 12.9% to $227 million.

T Expands Profitability and Cash Generation

Consolidated operating income increased 8.3% year over year to $7.04 billion. Adjusted operating income rose to $7.46 billion from $6.49 billion, while adjusted EBITDA improved 5.2% to $12.34 billion. The adjusted EBITDA margin expanded to 39.1% from 38%.

Cash from operating activities was $10.80 billion, up from $9.76 billion. Free cash flow increased 6.3% to $4.67 billion despite capital expenditures rising 16.4% to $5.70 billion. Capital investment, including vendor financing payments, totaled $6.13 billion.

AT&T Reaffirms Outlook and Accelerates Buybacks

AT&T reiterated its 2026 adjusted earnings guidance of $2.25-$2.35 per share. The company continues to expect adjusted EBITDA growth of 3-4%, free cash flow of more than $18 billion and capital investment of $23-$24 billion.

The company returned $4.1 billion to shareholders during the quarter, including about $2.2 billion through share repurchases. AT&T now expects approximately $10 billion of repurchases in 2026. It ended the quarter with $17.57 billion in cash, net debt of $126.38 billion and a net debt-to-adjusted EBITDA ratio of 2.68.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

Currently, AT&T has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

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

Outlook

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

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 investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is RenaissanceRe due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for RenaissanceRe Holdings Ltd. before we dive into how investors and analysts have reacted as of late.

RNR Q2 Earnings Beat on Higher Investment Income and Lower Expenses

RenaissanceRe reported second-quarter 2026 operating income of $12.92 per share, which surpassed the Zacks Consensus Estimate by 12.9%.  The bottom line also improved 5.1% year over year.

Total operating revenues declined 6.7% year over year to $2.64 billion. The top line missed the consensus mark by 1%.

The quarterly earnings benefited from lower expenses, higher net investment income and an improved total combined ratio. However, the upside was partly offset by lower net premiums earned, weaker underwriting results in the Casualty & Specialty segment and lower fee income.

RenaissanceRe’s Quarterly Operational Update

Gross premiums written of $3 billion tumbled 12.5% year over year and missed our estimate of $3.3 billion.

Net premiums earned declined 8.8% year over year to $2.2 billion. The metric missed the Zacks Consensus Estimate by 1.3% but was in line with our estimate.

Net investment income of $432.5 million advanced 4.7% year over year in the quarter, driven by higher average invested assets and portfolio reallocation. The metric beat the Zacks Consensus Estimate of $430 million but missed our estimate of $436.1 million. Fee income of $83 million decreased 12.6% year over year.

Total expenses were $1.7 billion, which dropped 11.5% year over year and came lower than our estimate of $1.9 billion. The year-over-year decrease can be attributed to a decline in net claims and claim expenses incurred, acquisition costs, operational and corporate expenses.

RenaissanceRe's underwriting income declined 0.4% year over year to $599.1 million. The combined ratio improved to 72.8% from 75.1% in the year-ago quarter.

Book value per common share was $264.77 as of June 30, 2026, up 24.8% year over year. Annualized operating return on average common equity declined to 20.1% from 24.2% in the year-ago quarter.

RenaissanceRe’s Q2 Segmental Update

Property Segment

The segment’s gross premiums written declined 10.4% year over year to $1.6 billion in the second quarter, lower than our estimate of $1.7 billion.

Net premiums earned of $881.6 million increased 1.6% year over year. The reported figure missed the Zacks Consensus Estimate of $901.6 million and our estimate of $898.8 million.

It generated an underwriting income of $642.7 million, which increased 2% year over year. The combined ratio improved to 27.1% from 27.4% in the prior-year quarter.

Casualty & Specialty Segment

The unit recorded gross premiums written of $1.4 billion in the quarter, which decreased 14.6% year over year and came lower than our estimate of $1.6 billion. The metric was hurt by reduced premiums derived from the general casualty and other specialty lines of business.

Net premiums earned tumbled 14.7% year over year to $1.32 billion. The reported figure marginally missed the Zacks Consensus Estimate of $1.33 billion but beat our estimate of $1.30 billion.

The segment incurred an underwriting loss of $43.6 million, wider than the prior-year quarter’s loss of $28.5 million. The combined ratio deteriorated to 103.3% from 101.8% in the year-ago quarter.

RenaissanceRe’s Q2 Financial Update

RenaissanceRe exited the second quarter with cash and cash equivalents of $1.3 billion, which fell 24.8% from the 2025-end level.

Total assets of $55.2 billion improved 2.6% from the 2025-end level. Debt amounted to $2.3 billion, inching up 0.1% from the figure as of Dec. 31, 2025.

Total shareholders’ equity of $11.8 billion was up 1.8% from the 2025-end level.

RenaissanceRe’s Share Repurchase Update

RenaissanceRe bought back common shares worth around $350 million in the second quarter. From July 1 through July 20, 2026, the company repurchased an additional $82.9 million of its shares.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 25.74% due to these changes.

VGM Scores

At this time, RenaissanceRe has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, RenaissanceRe has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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

Reliance’s Q2 Earnings Beat Estimates on Record Shipments and Pricing

Reliance reported second-quarter 2026 adjusted earnings of $6.27 per share, up 41.5% year over year. The figure beat the Zacks Consensus Estimate of $5.38 by 16.5%, driven by higher shipments, improved gross profit per ton and contributions from the U.S. border wall project. 

Net sales rose 26.5% to $4.63 billion and surpassed the consensus estimate of $4.17 billion by 10.9%. Tons sold increased 10.8% year over year to a quarterly record of 1.79 million, exceeding management’s projection of 1-3% growth. The figure surpassed our estimate of 1.7 million. 

The average selling price per ton advanced 14.5% to $2,602. The average selling price per ton climbed 7.8% from the first quarter, topping the company’s forecast of 1.5-3.5% growth. Higher carbon steel and aluminum prices supported the increase. It was above our estimate of $2,479. 

Segment Update

Demand in non-residential construction, including infrastructure, improved year over year, supported by data centers, energy infrastructure and public projects. The company expects demand in this sector to continue to improve in the third quarter, supported by strong activity across data centers, energy infrastructure and public infrastructure. 

Broader manufacturing demand strengthened on healthy activity in industrial machinery, shipbuilding, military, consumer products and construction machinery. Reliance expects the demand to remain healthy in the third quarter. 

Aerospace demand improved from the second quarter. Reliance expects gradual commercial aerospace build-rate increases and robust defense and space activity. Reliance expects commercial aerospace demand to remain strong in the third quarter. 

Automotive toll-processing demand also improved and is expected to remain steady at healthy levels. The company’s toll processing operations remain agile and responsive to the automotive market’s demand fluctuations. 

Semiconductor demand increased meaningfully year over year, aided by growing data center activity. The company expects semiconductor-related demand to continue improving during the third quarter. 

Financial Position

Reliance ended June 30, 2026, with cash and cash equivalents of $235.4 million. Total outstanding debt was $1.7 billion, including $520 million drawn under the company’s $1.5 billion revolving credit facility. 

Operating cash flow totaled $162.2 million in the quarter. Free cash flow was $68.8 million. 

Reliance did not repurchase common shares during the second quarter. However, the company repurchased $234.2 million of stock during the first half of 2026. Roughly $529 million remained available under its share-repurchase authorization at quarter-end. 

Outlook

Reliance expects third-quarter 2026 adjusted earnings of $6.40-$6.60 per share. The projection includes LIFO expense of $75 million, or $1.10 per share, and approximately 60 cents per share of earnings from the U.S. border wall project. 

Excluding the project, tons sold are expected to decline 2-4% sequentially due to normal seasonality. Including an estimated 2% sequential contribution from the project, total shipments are projected to increase 9-11% year over year. 

The average selling price per ton is expected to be flat to up 2% from the second quarter. Management anticipates generally healthy to improving demand and pricing, although trade-policy uncertainty, geopolitical conflict and potential supply constraints remain risks.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 39.9% due to these changes.

VGM Scores

At this time, Reliance has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Reliance has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

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 investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is RPM International due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for RPM International Inc. before we dive into how investors and analysts have reacted as of late.

RPM International Q4 Earnings & Sales Beat, Both Up Y/Y

RPM International reported strong fourth-quarter fiscal 2026 results, with adjusted earnings and net sales topping the Zacks Consensus Estimate and increasing on a year-over-year basis.

The quarterly results were driven by increased demand for engineered solutions for high-performance buildings and infrastructure projects, acquisitions, positive pricing and favorable foreign currency translation. These tailwinds were partly offset by soft demand in do-it-yourself markets.

Inside RPM International’s Headlines

The company’s adjusted earnings per share of $1.89 topped the Zacks Consensus Estimate of $1.84 by 2.7%. In the prior-year quarter, RPM reported adjusted earnings of $1.72 per share.

Net sales of $2.23 billion also surpassed the consensus mark of $2.19 billion by 2.1% and increased 7.2% year over year. Net sales rose 2.5% organically during the quarter year over year. Acquisitions net of divestitures and favorable foreign currency translation aided sales by 3.5% and 1.2%, respectively.

Geographically, sales climbed 11.1% in Europe, which represented 15% of the fiscal fourth quarter’s total sales, compared with the prior-year quarter, primarily driven by acquisitions. North American sales, accounting for 77% of total sales, increased 5.1% year over year due to strength in turnkey and system solutions for high-performance buildings.

Sales in Latin America, representing 4% of total sales, rose 18.9% year over year. Sales in Africa, the Middle East and other foreign markets increased 14.5% year over year, while Asia-Pacific sales surged 39.4% year over year. Emerging-market growth benefited from demand for engineered solutions for high-performance buildings and infrastructure projects.

RPM’s Operational Discussion

Selling, general and administrative expenses were $635.3 million compared with $592.8 million in the prior-year quarter. As a percentage of net sales, the metric remained unchanged at 28.5%.

Adjusted EBIT increased 7.7% year over year to a record $338.6 million. Adjusted EBIT margin expanded 10 bps to 15.2%. Higher volumes improved fixed-cost utilization, while operational-efficiency initiatives helped offset increased healthcare and insurance expenses and inflation.

Segmental Details of RPM International

Construction Products Group: In the reported quarter, the segment’s net sales increased 8.8% year over year to $904.2 million, owing to 5.7% organic sales growth, a 1.6% contribution from acquisitions net of divestitures and a 1.5% favorable foreign currency translation impact.

Adjusted EBIT of $175.1 million increased 14.6% year over year, and adjusted EBIT margin expanded 100 bps to 19.4%. Results benefited from broad-based strength led by concrete admixtures, roofing restoration systems and labor-saving wall systems for high-performance buildings, including data centers.

Performance Coatings Group: The segment’s net sales grew 5% year over year to $562.8 million. Sales increased 2.2% organically, while acquisitions and favorable foreign currency translation added 1.5% and 1.3%, respectively.

Adjusted EBIT rose 10.6% year over year to $84.9 million, and adjusted EBIT margin increased 80 bps to 15.1%. Strength in fireproofing systems, infrastructure projects and food coatings and ingredients was partly offset by a $3.2-million bad-debt expense related to a customer bankruptcy.

Consumer Group: Net sales in the segment increased 7% year over year to $764.8 million. Organic sales declined 0.8%, while acquisitions and favorable foreign currency translation contributed 7.2% and 0.6%, respectively.

The segment’s adjusted EBIT increased 2.6% year over year to $123.3 million. Adjusted EBIT margin contracted 70 bps to 16.1%. Acquisitions, pricing and operational improvements more than offset lower volumes, inflation and reduced fixed-cost absorption.

RPM’s Fiscal 2026 Highlights

For fiscal 2026, RPM reported adjusted earnings of $5.53 per share, up 4.3% year over year from $5.30. Net sales of $7.86 billion increased 6.7% year over year from $7.37 billion.

Adjusted EBIT increased 4.4% year over year to a record $1.02 billion. Growth was supported by higher sales, improved fixed-cost leverage and benefits from operational-improvement initiatives.

RPM International’s Balance Sheet

At the fiscal 2026-end, RPM International had total liquidity of $1.09 billion compared with $969.1 million at the fiscal 2025-end. This includes cash and cash equivalents of $315.2 million compared with $302.1 million at the fiscal 2025-end.

Total debt at the fiscal 2026-end was $2.53 billion, down from $2.65 billion at the fiscal 2025-end, as the company used a portion of its strong operating cash flow to reduce debt.

Cash provided by operating activities amounted to $898.7 million in fiscal 2026, up from $768.2 million in the prior year.

In fiscal 2026, capital expenditures were $223.5 million compared with $229.9 million in fiscal 2025. The company returned $349.2 million to stockholders through cash dividends and share repurchases, up 7.3% year over year from $325.6 million.

RPM’s Fiscal 2027 Outlook

For the first quarter of fiscal 2027, RPM expects consolidated sales to increase in the mid-single-digit range year over year. Sales across the Construction Products, Performance Coatings and Consumer groups are also projected to grow in the mid-single-digit range year over year.

Consolidated adjusted EBITDA is expected to increase in the mid-single-digit range year over year. For fiscal 2027, management expects sales growth of 3% to 7% and adjusted EBITDA growth of 5% to 10% year over year.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

At this time, RPM International has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, RPM International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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

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

Rollins Q2 Earnings Miss Estimates

Rollin Inc. reported unimpressive second-quarter 2026 results, with both earnings and revenues missing the Zacks Consensus Estimate.

ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter.

The quarter was affected by slower growth in parts of the residential pest control business, although commercial and termite operations continued to post healthy gains.

ROL's Quarterly Performance Reflects Mixed Demand Trends

Residential revenues increased 6.6% year over year to $485.8 million. Commercial revenues climbed 8.6% to $347.9 million, while termite and ancillary revenues rose 10.5% to $234.2 million. Franchise and other revenues declined 7.4% to $10.7 million.

Management attributed the softer residential performance to weaker consumer-initiated demand across search, digital media and inbound calls, which reduced lead volumes during the quarter. However, relationship-based channels, including home builders and door-to-door sales, delivered solid organic growth.

Rollins Faces Margin Pressure Despite Revenue Growth

Operating income increased 1.5% year over year to $201.4 million. However, the operating margin contracted 110 basis points to 18.7% as costs remained aligned for a stronger demand environment entering the peak season.

Adjusted operating income rose 2% to $209.9 million, while the adjusted operating margin declined 110 basis points to 19.5%. Adjusted EBITDA increased 2.2% to $236.3 million, with the adjusted EBITDA margin contracting 120 basis points to 21.9%.

ROL Management Takes Steps to Improve Execution

Management noted that demand trends softened during the quarter while the company's cost structure remained positioned for stronger growth, weighing on profitability.

To address these challenges, Rollins has implemented organizational and operational changes aimed at improving local execution, strengthening accountability and better aligning resources with current demand conditions. Management also indicated that lead volumes improved toward the end of June and continued into the first few weeks of July.

Rollins Maintains Healthy Cash Generation

The company generated operating cash flow of $172.5 million during the quarter, down 1.5% from the prior-year period. Free cash flow totaled $166.1 million, declining 1.2% year over year.

During the quarter, Rollins invested $117 million in acquisitions, spent $6.4 million on capital expenditures and paid dividends totaling $88.1 million, reflecting its continued focus on growth investments and shareholder returns.

ROL Balance Sheet Remains Strong

Rollins exited the quarter with cash and cash equivalents of $109.1 million compared with $100 million at year-end 2025. Long-term debt totaled $487.1 million, essentially unchanged from year-end 2025.

The company reiterated that its balance sheet remains strong and provides ample financial flexibility to pursue acquisitions, invest in long-term growth initiatives and maintain its balanced capital allocation strategy.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -9.4% due to these changes.

VGM Scores

Currently, Rollins has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

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

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

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

QuantumScape Q2 Loss Narrower-Than-Expected

QuantumScape reported second-quarter 2026 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. The company delivered an earnings surprise of 11.1%. The company had incurred a loss of 20 cents per share a year earlier.

QuantumScape did not report GAAP revenues. The quarter featured lower operating expenses, improving Eagle Line productivity and $10.8 million in customer billings. The company also expanded its automotive relationships and established business verticals targeting electric vehicles, AI data centers, aerospace and defense.

Operating Expenses Decline

GAAP net loss narrowed 14.4% year over year to $98.24 million from $114.70 million. Total operating expenses fell 14.1% to $106.13 million, supporting the improvement in the bottom line.

Research and development expenses declined 18.4% to $82.53 million. General and administrative expenses increased 5.3% to $23.59 million. Interest income was $8.36 million, down from $8.94 million in the prior-year quarter.

QS Builds Automotive Partnerships

The company announced a multi-year partnership with Honda to advance its solid-state lithium-metal battery technology for automotive and other applications. The agreement followed an extensive evaluation of QuantumScape’s technology and adds another top-10 global automaker to its customer portfolio.

QS also updated its collaboration and licensing arrangement with Volkswagen Group’s PowerCo. The revised milestones focus on automotive cell development, larger-format cells and QuantumScape’s future technology roadmap. The company is working with four top-10 automakers and shipped cells to another automotive customer during the quarter.

Eagle Line Ramps Sample Production

QuantumScape continued to ramp the Eagle Line, its automated pilot production line in San Jose. Core tools achieved uptime above 90%, while key productivity measures reached management’s targets. The company is increasing cell volumes and shipping samples to customers.

QS aims to double cell output further in the second half of 2026. Higher production is expected to accelerate customer shipments, shorten development cycles and provide a foundation for transferring manufacturing processes to future high-volume facilities. QS continues to work with Murata Manufacturing and Corning on scaling ceramic separator production through the Cobra process.

QuantumScape Targets New High-Value Markets

The company created three business verticals. QSEV will focus on electric vehicles, QSDC will pursue AI data centers, and QSAS will address advanced applications such as aerospace and defense.

QSDC is working with original design manufacturers and data center architects on solutions based on the QSE-5 platform. QSAS shipped QSE-5 cells to a major U.S. defense contractor and is engaging other aerospace and defense customers. Management believes the technology’s energy density, power capability and safety profile can support these markets.

QS Advances Safety and Larger-Format Cells

Increased Eagle Line output enabled broader safety testing of QSE-5 cells. Testing included nail penetration, external short circuits and thermal stability at temperatures up to 300 degrees Celsius. Management said the larger test set replicated findings from earlier prototypes.

The company also demonstrated that its Cobra process can produce larger ceramic separators. Larger-format cells can improve packaging efficiency and raise cell-level energy density, while giving QS greater flexibility to meet varying customer requirements.

Capital Spending Forecast Reduced

Adjusted EBITDA loss was $64.19 million compared with a loss of $63.01 million a year earlier. QuantumScape maintained its full-year 2026 adjusted EBITDA loss guidance of $250-$275 million.

Capital expenditures totaled $4.62 million, down 46.2% from $8.59 million in the prior-year quarter. QS lowered its 2026 capex guidance to $27-$37 million from $40-$60 million, reflecting capital discipline and savings on specific projects.

Strong Liquidity Position

Net cash used in operating activities improved to $56.75 million from $61.84 million a year ago. Customer billings totaled $21.8 million during the first half of 2026, surpassing the $19.5 million recorded for all of 2025.

QuantumScape ended June with $859 million in liquidity, comprising $132.87 million in cash and cash equivalents and $726.13 million in marketable securities. The balance sheet provides funding as the company scales the Eagle Line, develops larger-format cells and pursues commercialization across its three business verticals. 

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, QuantumScape has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, QuantumScape has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

QuantumScape is part of the Zacks Automotive - Original Equipment industry. Over the past month, Autoliv, Inc. (ALV), a stock from the same industry, has gained 5.6%. The company reported its results for the quarter ended June 2026 more than a month ago.

Autoliv reported revenues of $2.8 billion in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $2.43 for the same period compares with $2.21 a year ago.

Autoliv is expected to post earnings of $2.21 per share for the current quarter, representing a year-over-year change of -4.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -7%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Autoliv. Also, the stock has a VGM Score of A.

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 investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is RLI Corp. due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for RLI Corp. before we dive into how investors and analysts have reacted as of late.

RLI's Q2 Earnings Beat Estimates on Premium Growth, Investment Income

RLI Corp. reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter.

The quarterly results reflect continued premium growth, higher investment income and favorable prior-year reserve development. However, weaker underwriting performance in the casualty segment partly offset these positives.

Operational Performance

Operating revenues for the reported quarter were $463 million, up 4.9% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1.6%.

Gross premiums written (GPW) increased 3.1% year over year to $579.7 million, driven by strong growth in the casualty segment. Our estimate was $592.9 million.

Net investment income increased 16.8% year over year to $46 million. The Zacks Consensus Estimate was $42.7 million, while our estimate for the metric was pegged at $40.7 million. The investment portfolio’s total return was 3.4% in the quarter.

Total expenses increased 6.4% year over year to $367.9 million, primarily due to higher policy acquisition costs, insurance operating expenses and interest expense on debt. Our estimate was $376.8 million.

Underwriting income fell 3.7% year over year to $59.9 million. Our estimate was $53.1 million. The combined ratio deteriorated 110 basis points year over year to 85.6, reflecting higher catastrophe losses. Our estimate was 87.2.

Segmental Results

Casualty lines’ GPW rose 10.6% year over year to $339 million. The figure was above our estimate of $338.1 million.

The underwriting income decreased significantly to $1.7 million from $8.3 million, down 79% year over year. The combined ratio deteriorated 280 bps year over year to 99.3%. The figure was above our estimate of 98.4%.

Property lines’ GPW fell 5.9% year over year to $199.3 million. The figure was below our estimate of $207.7 million.

The underwriting income increased to $53.5 million, up 8.1% supported by favorable reserve development. The combined ratio improved 530 bps year over year to 56.8%. Our estimate was 65.2%.

Surety lines’ GPW declined 5.7% year over year to $41.4 million. The figure was below our estimate of $47.1 million.

The underwriting income improved 5.4% year over year to $4.7 million. The combined ratio improved 70 bps year over year to 87.2%. Our estimate was 84.8%.

Financial Update

RLI exited the second quarter with total investments and cash of $4.9 billion, up 4.5% from 2025-end.

Book value was $19.09 per share as of June 30, 2026, up 11% from the figure as of Dec. 31, 2025.

Net cash flow from operations was $145.2 million, down 16.9% year over year.
The statutory surplus increased 5.2% from 2025-end to $1.94 billion as of June 30, 2026.

Return on equity was 24.5%, expanding 480 bps from the year-ago period.

Capital Deployment Update

On June 12, 2026, the insurer paid a regular quarterly dividend of 18 per cent per share for the second quarter. RLI’s cumulative dividends totaled more than $1.3 billion, paid over the last five years.

On May 14, 2026, the board of directors approved a $250 million share repurchase program. The company repurchased 0.2 million shares for $12 million during the second quarter. As of June 30, 2026, $238 million remained available under the authorization.
 

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

VGM Scores

Currently, RLI Corp. has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

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

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

Rogers Communications Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Rogers Communications reported second-quarter 2026 adjusted earnings of 83 cents per share, beating the Zacks Consensus Estimate by 3.75% and up 1.2% year over year.

In domestic currency (Canadian dollar), adjusted earnings increased 1% year over year to C$1.15 per share.

Revenues of $4.06 billion surpassed the consensus mark by 2.45% and increased 7.6% year over year.

Total revenues increased 7.7% year over year to C$5.62 billion, primarily driven by growth in the Media businesses. Total service revenues increased 8% year over year to C$5.06 billion in the quarter.

Q2 Segmental Details of RCI

Wireless Details

Wireless revenues were unchanged year over year at C$2.54 billion. Wireless Service revenues were stable at C$1.99 billion, as subscriber growth was offset by lower mobile phone average revenue per user, or ARPU. Equipment revenues increased 2% to C$550 million on a shift toward higher-value devices.

Adjusted EBITDA increased 1% to C$1.31 billion. The margin expanded 70 basis points to 66%. Monthly mobile phone ARPU declined to C$54.25 from C$55.45.

As of June 30, 2026, the prepaid mobile phone subscriber base totaled 1.22 million, an increase of 63K subscribers from the prior-year period. The monthly churn rate was 5.01% compared with 3.23% reported in the year-ago quarter.

As of June 30, 2026, the postpaid wireless subscriber base totaled 11.05 million, representing net additions of 135K subscribers year over year. Postpaid mobile phone churn improved 6 basis points year over year to 0.94%.

Wireless segment operating costs decreased 0.6% year over year to C$1.23 billion.

Cable Details

Cable revenues increased 1% year over year to C$1.98 billion. Service revenues also rose 1% to C$1.97 billion, supported by retail Internet subscriber growth and base management actions, partly offset by declines in Video and Home Phone subscribers.

Cable adjusted EBITDA increased 1% to C$1.16 billion, with the margin improving 10 basis points to 58.4%. Retail Internet net additions totaled 17K, while customer relationship net additions were 9K. Monthly ARPA slipped to C$135.49 from C$135.74 reported in the year-ago quarter.

As of June 30, 2026, the retail Internet subscriber count was nearly 4.521 million, representing a net increase of 75K subscribers year over year.

As of June 30, 2026, total Smart Home Monitoring subscribers reached 158K, indicating an increase of 17K subscribers. The total Home Phone subscriber count was nearly 1.33 million, reflecting a loss of 119K customers in the reported quarter.

Cable segment operating costs increased 0.6% year over year to C$826 million.

Media Details

Media revenues surged 53% to C$1.16 billion, reflecting about C$310 million from the consolidation of Maple Leaf Sports & Entertainment beginning in the second half of 2025. Excluding MLSE, organic revenues increased 13%, led by higher Toronto Blue Jays attendance and sponsorships.

Media adjusted EBITDA climbed to C$69 million from C$8 million. Operating costs increased 45% to C$1.09 billion, reflecting roughly C$230 million of added MLSE costs, higher Blue Jays player salaries and game-day expenses, and increased programming costs. Lower advertising revenues remained a headwind.

Consolidated Results

Consolidated adjusted EBITDA increased 3% to C$2.44 billion, while the adjusted EBITDA margin contracted 180 basis points to 43.5%. Depreciation and amortization increased 1% to C$1.19 billion, while finance costs declined 10% to C$565 million.

Operating costs increased 11.2% to C$3.17 billion. As a percentage of revenues, operating costs expanded 180 bps to 56.5%.

RCI’s Q2 Balance Sheet & Cash Flow Details

As of June 30, 2026, Rogers Communications had C$6.1 billion of available liquidity, including C$1.7 billion in cash and cash equivalents and C$4.4 billion available under bank and other credit facilities. In comparison, the company had C$5.9 billion of available liquidity as of Dec. 31, 2025.

Rogers Communications’ debt leverage ratio was 3.8 times as of June 30, 2026, improved from 3.9 times as of Dec. 31, 2025.

Cash provided by operating activities declined 5% to C$1.52 billion due to higher investment in operating assets and liabilities, partly offset by increased adjusted EBITDA. Free cash flow rose 6% to C$982 million, aided by lower capital expenditures and higher adjusted EBITDA.

Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend on July 21, 2026.

RCI Reaffirms 2026 Outlook

For 2026, RCI maintained its expectations for total service revenue growth of 3%-5% and adjusted EBITDA growth of 1%-3%. Capital expenditures are projected between C$2.5 billion and C$2.7 billion.

Free cash flow is expected in the C$4.1 billion to C$4.3 billion range. The company expects its C$4.35 billion purchase of the remaining 25% interest in MLSE to close in the fourth quarter, subject to league approvals. Rogers Communications then intends to pursue the sale of a minority interest in its consolidated sports, media and entertainment assets.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in fresh estimates.

The consensus estimate has shifted 9.56% due to these changes.

VGM Scores

Currently, Rogers Communication has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.

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

Outlook

Rogers Communication has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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

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

OTIS Q2 Earnings Beat Estimates, Revenues Up on Strong Service Growth

Otis Worldwide reported mixed second-quarter 2026 results, wherein earnings beat the Zacks Consensus Estimate but declined year over year. Meanwhile, net sales surpassed the consensus mark and increased from the prior year's reported figure.

Despite continued strength in the Service business, the company reduced full-year adjusted EPS, adjusted operating profit and free cash flow guidance

Otis' second-quarter performance reflected continued momentum in its Service business, driven by strong modernization and repair activity, accelerating maintenance trends and robust backlog growth. However, higher investments in Service initiatives and continued weakness in the New Equipment business weighed on profitability.

Inside OTIS' Q2 Headlines

OTIS reported adjusted earnings per share (EPS) of $1.01, beating the Zacks Consensus Estimate of $1.00 by 1%. In the year-ago quarter, it reported adjusted EPS of $1.05.

Net sales of $3.86 billion surpassed the consensus mark of $3.72 billion by 3.7% and increased 7.3% from $3.60 billion reported in the year-ago quarter. Organic sales increased 6% year over year, led by continued strength in the Service segment. Modernization orders increased 9% at constant currency, while modernization backlog expanded 24% year over year, highlighting healthy demand across the business.

Adjusted operating margin contracted 180 basis points (bps) year over year to 15.2%, reflecting unfavorable segment performance and ongoing investments in strategic Service growth initiatives, partly offset by a favorable business mix.

Segment Details of OTIS

Service: Net sales from the segment increased 11% year over year to $2.58 billion. Organic sales rose 9%, driven by broad-based strength across maintenance, repair and modernization activities. Our model estimated organic sales for the segment to grow 5.4%.

Organic maintenance and repair sales increased 6%, while organic modernization sales jumped 24% from the prior-year quarter. 

Segment operating profit increased to $599 million from $578 million a year ago. However, segment operating margin contracted 170 bps year over year to 23.2% as higher labor costs, ongoing investments in strategic Service initiatives, productivity headwinds, material costs and unfavorable mix more than offset higher volume and favorable pricing.

New Equipment: Net sales from the segment were $1.28 billion, flat year over year. Organic sales decreased 1%, reflecting a high-teens decline in China and a mid-single-digit decline in EMEA, partly offset by approximately 10% organic growth in the Americas and low single-digit growth in Asia Pacific. Our model predicted organic sales for the New Equipment segment to decrease 3.3%.

New Equipment orders declined 5% at constant currency, while backlog increased 3% at actual currency and 4% at constant currency.

Segment operating profit declined to $40 million from $68 million in the year-ago quarter. Segment operating margin contracted 220 bps year over year to 3.1%, primarily due to lower volume, unfavorable pricing and adverse mix.

Financial Position of Otis

Net cash provided by operating activities totaled $267 million during the second quarter compared with $215 million in the prior-year period.

Free cash flow improved to $223 million from $179 million a year ago, while adjusted free cash flow increased to $290 million from $243 million. During the quarter, the company repurchased approximately $400 million of shares, underscoring its continued focus on returning capital to shareholders.

OTIS Revises 2026 Guidance

Otis reaffirmed its 2026 net sales outlook of $15.1-$15.3 billion, implying approximately 4.6-6% year-over-year growth. Organic sales growth is also still expected in the low to mid-single-digit range.

Organic New Equipment sales are now expected to range from down low single digits to flat, compared with the previous outlook of flat to low single digits. Organic Service sales guidance remained unchanged at mid to high-single-digit growth.

The company lowered its adjusted operating profit outlook to approximately $2.4 billion from the previous expectation of approximately $2.5 billion. Adjusted EPS is now expected in the range of $4.01-$4.05, down from the prior outlook of $4.20-$4.24.

Otis also reduced its adjusted free cash flow guidance to $1.50-$1.55 billion from the previous $1.60-$1.65 billion.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -5.09% due to these changes.

VGM Scores

At this time, Otis Worldwide has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

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

Outlook

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

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

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

Philip Morris Q2 Earnings Beat Estimates, Organic Sales Rise 7.6% Y/Y

Philip Morris reported second-quarter 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year. 

PM posted quarterly adjusted earnings of $2.20 per share, which increased 15.2% year over year. Excluding currency effects, the adjusted earnings jumped 13.6% year over year. The bottom line beat the Zacks Consensus Estimate of $2.04.

Net revenues of $11,192 million increased 10.4% on a reported basis and 7.6% on an organic basis year over year. Revenues beat the Zacks Consensus Estimate of $10,556 million. The increase in organic revenues was backed by favorable pricing in the international combustibles business, with additional support from favorable volume/mix due to strong international smoke-free volumes, partly offset by an unfavorable international combustibles mix.

Total shipment volumes increased 2.5% to 205.2 billion units in the second quarter.

Adjusted gross profit increased 11.5% (up 8.7% on an organic basis) to $7,665 million, while adjusted operating income rose 12.4% to $4,773 million.

Decoding PM’s Segment Performance

Net revenues in the International Smoke-Free segment grew 14.2% (up 11.8% on an organic basis) to $3,877 million, attributed to a favorable volume/mix from higher HTU and e-vapor volumes, alongside favorable pricing driven by HTUs. Adjusted gross profit rose 17.1% (up 14.6% organically). Shipment volume grew 8% to 44.7 billion units, led by broad-based growth across markets, particularly Taiwan, Romania and Greece.

In the International Combustibles segment, net revenues increased 9.8% (up 6.4% organically) to $6,459 million, driven by favorable pricing, partly offset by an unfavorable geographic mix as growth in developing markets more than offset declines in Europe. Adjusted gross profit increased 11.5% (up 8% organically). Shipment volume increased 1.1% to 156.9 billion units, with growth in Turkey, Indonesia and Egypt.

Revenues in the U.S. segment fell 0.7% (down 0.9% on an organic basis) to $856 million, due to broadly stable ZYN revenues, declines in the cigar business and unfavorable timing effects in the Wellness business. Adjusted gross profit decreased 9% (down 8.9% organically).  Shipment volume increased 1.8% to 3.5 billion units.

Philip Morris: Other Updates

The company ended the quarter with cash and cash equivalents of $5,999 million, long-term debt of $42,366 million and a total shareholder deficit of $6,657 million.

Sneak Peek Into PM’s Outlook

Adjusted EPS for 2026 is now envisioned in the $8.26-$8.41 range, indicating 9.5-11.5% growth. Earlier, the metric was expected in the $8.36-$8.51 per share range, implying 10.9-12.9% growth. Adjusted EPS, excluding currency, is likely to be in the $8.11-$8.26 band, indicating a year-over-year increase of 7.5-9.5%. For 2026, Philip Morris expects reported EPS in the band of $7.19-$7.34 compared with $7.26 in 2025. Earlier, the metric was expected in the $7.56-$7.71 per share range. Overall shipment volumes are expected to remain stable to slightly increase, driven by continued high-single-digit growth in smoke-free products, while cigarette volumes are projected to decline 2-3%, compared with the previous expectation of around 3%.

For 2026, PM still expects net revenues to increase 5-7% on an organic basis. The operating income on an organic basis is likely to rise 7-9%. Management expects an operating cash flow of around $13.5 billion in 2026. Capital expenditures are likely to be in the band of $1.4 billion to $1.6 billion, primarily implying investments to support the smoke-free business.

For the third quarter of 2026, adjusted EPS is projected in the range of $2.20 to $2.25.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -5.71% due to these changes.

VGM Scores

Currently, Philip Morris has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

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

Outlook

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

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

Will the recent positive trend continue leading up to its next earnings release, or is Packaging Corp. due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Packaging Corporation of America before we dive into how investors and analysts have reacted as of late.

Packaging Corp Q2 Earnings Beat Estimates on Record Shipments

Packaging Corp reported second-quarter 2026 adjusted earnings of $2.35 per share, down 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above the company’s guidance of $2.33, driven by higher production and sales volumes, including contributions from the acquired Greif business. This was partially offset by lower price and mix in the packaging segment, and higher operating, freight and labor costs.

Including special items related to facility closures, the Wallula mill restructuring and acquisition and integration costs, earnings in the quarter were $2.15 per share compared with the prior-year quarter’s $2.67.

Packaging Corp’s Gross Profit Rises Y/Y in Q2

Sales increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter.

Gross profit increased 6.1% year over year to $512.5 million. However, the gross margin contracted to 20.6% from 22.2% as the cost of sales rose 17.1% to $1.98 billion. Selling, general and administrative expenses increased 17% to $179 million.

Adjusted operating income improved 1.4% year over year to $315 million. Adjusted EBITDA advanced 7.7% to $486 million, reflecting higher production and sales volumes in packaging and stronger paper segment results.

PKG’s Q2 Segmental Performances

Packaging: Sales in this segment increased 15.2% year over year to $2.31 billion, aided by higher production and sales volume, including contributions from the acquired Greif business. These gains were partly offset by unfavorable price and mix, along with higher labor, freight and operating costs.

Shipments per day at legacy corrugated products plants increased 4.1%. Containerboard production was 1,415,000 tons, while containerboard inventory increased 40,000 tons from the year-ago quarter due to the acquisition.

Adjusted operating profit was $328 million compared with $322 million in the prior-year quarter.

Paper: The segment’s revenues were $157 million in the April-June quarter, up 7.9% year over year. Sales volume increased 6.3% from the second quarter of 2025. 

The segment reported an operating profit of $34.3 million compared with the year-ago quarter’s $25.8 million. The improvement was supported by higher sales volume and favorable price and mix.

Packaging Corp's Cash Position Declines

PKG ended the quarter with $666.8 million in cash, cash equivalents and marketable debt securities, down from $955.9 million a year earlier. Capital spending increased to $205.9 million from $169.7 million.

For the first six months of 2026, capital expenditure totaled $370.6 million compared with $317.8 million in the prior-year period.

PKG Q3 Outlook

The company expects third-quarter 2026 adjusted earnings of $2.91 per share. The outlook assumes continued strong packaging demand, another sequential increase in corrugated products volume, and benefits from previously announced containerboard and corrugated product price increases.
PKG expects better operating performance across its containerboard mill system, although scheduled maintenance expenses will shift toward the paper segment. Freight costs and recycled fiber prices are expected to remain elevated, while higher mill production should increase chemical and electricity usage. PKG also anticipates lower paper volume but improved pricing and mix.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, Packaging Corp. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

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

Outlook

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

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

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

PulteGroup Q2 Earnings & Revenues Beat Estimates, New Orders Up Y/Y

PulteGroup reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year.

The quarterly results reflect reduced home-closing volumes, softer average selling prices (ASP) and margin compression. Ongoing softness in the housing market because of weaker consumer confidence and ongoing affordability challenges due to high mortgage rates hurt the top-line growth.

Inside PulteGroup’s Q2 Headlines

Quarterly earnings were $2.48 per share, beating the Zacks Consensus Estimate of $2.38 by 4.2%. Earnings declined 18.2% from $3.03 in the prior-year quarter.

Total revenues (Homebuilding & Financial Services) of $3.983 billion edged past the consensus mark of $3.980 billion by 0.1% but fell 9.6% year over year.

PulteGroup’s Homebuilding Highlights

Homebuilding segment’s revenues decreased 9.7% year over year to $3.89 billion. Home sale revenues fell 10.8% to $3.81 billion, reflecting weaker delivery volumes and lower average pricing. Land sale and other revenues increased to $78.9 million from $34.6 million.

The number of homes closed declined 8.4% year over year to 6,997 units. Deliveries decreased across the Northeast, Midwest, Texas and West regions, while closings in the Southeast and Florida remained relatively stable. The ASP of homes delivered fell 2.7% to $544,000 from $559,000.

Net new orders increased 6.4% year over year to 7,536 homes. Order growth was recorded across all buyer groups, supported by an 8% increase in average community count to 1,074. The dollar value of net new orders rose 5.1% to $4.08 billion.

PulteGroup ended the quarter with a backlog of 10,966 homes, up 1.7% from the prior-year level. Backlog units increased in the Northeast, Florida, Midwest and Texas, while the Southeast and West reported declines. The value of homes in backlog slipped 0.6% to $6.80 billion. The divergence between higher units and lower value indicates that the average value of homes in backlog declined year over year, consistent with the company’s broader pricing pressure.

Home sale gross margin contracted 200 basis points (bps) year over year to 25%. However, the metric improved 60 basis points sequentially from the first quarter of 2026, indicating some near-term stabilization in profitability.

Selling, general and administrative (SG&A) expenses declined to $383 million from $390 million. However, as a percentage of home sale revenues, SG&A expenses increased 100 bps to 10.1%, as the lower revenue base reduced operating leverage.

PulteGroup’s Financial Services Details

Financial Services revenues declined 4.2% to $96.9 million. Overall, the revenue mix reflected continued housing-market pressure as affordability constraints, volatile mortgage rates and economic uncertainty affected buyer activity.

Mortgage origination volume decreased to 4,629 loans from 4,984, while origination principal fell to $1.98 billion from $2.16 billion. The mortgage capture rate improved modestly to 85.2% from 84.8%.

PHM’s Liquidity and Buybacks Stay in Focus

PulteGroup ended the quarter with $1.38 billion in cash, cash equivalents and restricted cash. Notes payable totaled $1.82 billion, resulting in a debt-to-capital ratio of 12.3% and a net debt-to-capital ratio of 3.3%.

Operating cash flow for the first six months of 2026 declined 58.1% year over year to $176.8 million, partly reflecting an $807.3 million increase in inventories. During the second quarter, PHM repurchased 3.1 million shares for $373 million. First-half repurchases totaled $681.2 million, representing 5.5 million shares.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

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

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

Outlook

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

Performance of an Industry Player

PulteGroup belongs to the Zacks Building Products - Home Builders industry. Another stock from the same industry, D.R. Horton (DHI), has gained 3.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

D.R. Horton reported revenues of $9.23 billion in the last reported quarter, representing a year-over-year change of +0%. EPS of $3.20 for the same period compares with $3.36 a year ago.

D.R. Horton is expected to post earnings of $3.10 per share for the current quarter, representing a year-over-year change of +2%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.5%.

D.R. Horton has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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

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

Oceaneering Q2 Earnings & Revenues Rise Y/Y, Adjusted EBITDA Up

Oceaneering International reported second-quarter 2026 earnings of 65 cents per share, up from 54 cents in the year-ago quarter. Higher year-over-year operating income from the company's Subsea Robotics, Manufactured Products, Offshore Projects Group and Aerospace and Defense Technologies segments contributed to this improvement.

Total revenues were $768.2 million, increased approximately 10% from the year-ago quarter’s $698.2 million. This increase reflected revenue growth across all segments except Integrity Management & Digital Solutions.

In the second quarter of 2026, the Houston, TX-based oil and gas equipment and services company reported adjusted EBITDA of $114.5 million, up 10.9% year over year.

Operating income increased 11% year over year to $88.2 million. Gross margin expanded to $157 million from $148.4 million, reflecting revenue growth and improved performance across most operating segments.

Q2 Segmental Information

Subsea Robotics (SSR): The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.

Revenues totaled $232 million compared with the year-ago quarter’s $218.8 million.

The segment also reported an operating income of $66.3 million compared with $64.5 million a year ago.

The company's segment delivered an EBITDA margin of 35% in the second quarter of 2026, flat compared with the year-ago quarter. Revenue per day for remotely operated vehicles (“ROV”) rose to $11,894, while ROV fleet utilization slightly decreased to 66%.

Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.

Revenues totaled $149 million compared with the year-ago quarter’s $145.1 million.

The segment posted an operating profit of $21.9 million in the second quarter, up from the year-ago quarter’s $18.8 million.

The backlog totaled $445 million as of June 30, 2026, down 13.8% from the same time in 2025. For the 12 months ending June 30, 2026, the book-to-bill ratio was 0.88.

Offshore Projects Group (OPG): This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, the service and rental business and ROV tooling.

Revenues increased about 22.5% to $182.8 million from $149.3 million in the year-ago quarter.

The unit’s operating income totaled $30 million compared with the prior-year quarter’s $21.7 million. The company’s operating income margin slightly increased to 16% from the prior-year quarter’s 15%, reflecting favorable project mix and disciplined execution.

Integrity Management & Digital Solutions (IMDS): This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.

Revenues of $70.8 million decreased from the year-ago quarter’s $75.4 million.

Operating income decreased to $0.1 million from $4.6 million due to lower activity, weaker cost absorption and higher personnel-related costs in West Africa and the Middle East.

Aerospace and Defense Technologies (ADTech): The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.

Revenues totaled $133.5 million, up from $109.6 million recorded in the second quarter of 2025.

The operating income increased to $16.4 million from $16.3 million in the year-ago quarter. Operating income margin decreased to 12% from 15% in the year-ago quarter due to program mix and timing.

Capital Expenditure & Balance Sheet

The capital expenditure in the second quarter, including acquisitions, totaled $30.8 million.

As of June 30, 2026, OII had cash and cash equivalents worth $629.5 million and $688.9 million, respectively, along with a long-term debt of about $490.2 million. The debt-to-capitalization was 29.6%.

The company repurchased 263,335 shares for approximately $10 million. OII also issued $500 million of senior notes due 2034 and increased its revolving credit commitments to $345 million from $215 million.

Q3 and 2026 Outlook by Oceaneering

The company expects consolidated revenues to increase in the third quarter of 2026, with EBITDA projected in the range of $115 million to $125 million. At the segment level, SSR is expected to post growth in both revenues and operating income. Manufactured Products is projected to witness slight declines in revenues and operating income. OPG is anticipated to deliver increases in both revenues and operating income.

IMDS revenues are expected to increase, while operating income is likely to remain relatively flat. Meanwhile, ADTech is forecasted to report higher revenues and operating income. Unallocated expenses are expected to be in the $50 million range. 

Management expressed confidence in the company's outlook for the remainder of 2026, supported by strong first-half execution, healthy demand across most of its businesses and an improved financial position. The company expects offshore activity to continue strengthening, driven by higher rig utilization, longer-duration contracts and sustained demand for subsea services.

Management also expects Subsea Robotics to benefit from higher ROV utilization and continued survey vessel activity, while the Manufactured Products backlog is anticipated to improve in the second half of 2026, supported by recent contract awards and additional opportunities in the sales pipeline. Despite ongoing uncertainty in the Middle East and lower activity in West Africa affecting the IMDS business, management believes the performance of its other operating segments remains in line with or ahead of prior expectations.

The company updated its full-year 2026 consolidated adjusted EBITDA outlook to a range of $400 million to $440 million. OII retained its previously issued consolidated and segment guidance, except that IMDS operating income is now expected to decline significantly, with the operating income margin projected to be in the low-single-digit percentage range.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 9.43% due to these changes.

VGM Scores

At this time, Oceaneering International has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Oceaneering International has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Oceaneering International belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Weatherford (WFRD), has gained 6.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Weatherford reported revenues of $1.11 billion in the last reported quarter, representing a year-over-year change of -8.2%. EPS of $0.55 for the same period compares with $1.87 a year ago.

For the current quarter, Weatherford is expected to post earnings of $1.20 per share, indicating a change of +7.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.6% over the last 30 days.

Weatherford has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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 investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Medpace due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Medpace Holdings, Inc. before we dive into how investors and analysts have reacted as of late.

MEDP Q2 Earnings and Revenues Surpass Estimates

Medpace Holdings, Inc.reported second-quarter 2026 earnings of $4.25 per share, up 37.1% year over year. The figure beat the Zacks Consensus Estimate by 4.17%.

Revenues rose 17.2% to $707.33 million and surpassed the consensus mark by 1.12%. On a constant-currency basis, growth was also 17.2%, indicating that foreign exchange had little effect on the reported expansion.

Medpace Posts Record Quarterly Awards

Net new business awards jumped 28.2% to $795.7 million, driving a net book-to-bill ratio of 1.13. Management attributed the record net bookings performance partly to a meaningful decline in cancellations from elevated first-quarter levels.

Backlog as of June 30, 2026 rose 4.9% year over year to $3.01 billion. Medpace expects about $1.96 billion of backlog to convert into revenues over the next 12 months. The quarterly backlog conversion rate increased to 24.1% from 21.2% a year ago.

MEDP Sees Oncology Regain Momentum

Management said oncology accounted for more than half of second-quarter bookings and initial award notifications. This marked a shift from the recent period when cardiometabolic programs were a larger contributor to business growth.

Medpace expects oncology to move back toward a more historically typical share of its portfolio over the next year. Cardiometabolic award notifications have moderated, while oncology opportunities have strengthened. The company also reported meaningfully higher request-for-proposal activity both sequentially and year over year.

Medpace Highlights Cash Position and Buybacks

Cash and cash equivalents totaled $502.7 million at the second quarter-end compared with $652.7 million as of March 31, 2026.

Net days sales outstanding remained favorable at negative 59.6 days.

Cumulative cash flow from operating activities came in at $162 million compared with $274.4 million a year ago.

MEDP repurchased approximately 706,000 shares for $294.7 million during the second quarter. The company had $527 million remaining under its authorized share repurchase program at quarter-end.

MEDP Raises Its 2026 Outlook

Medpace now expects 2026 revenues of $2.805-$2.885 billion, implying growth of 10.9%-14% over 2025 levels. The Zacks Consensus Estimate for revenues stands at $2.84 billion.

EBITDA is projected between $618 million and $642 million, suggesting growth of 10.8%-15.1%.

GAAP net income is forecast at $494-$514 million, while earnings are expected between $17.25 and $17.95 per share. The Zacks Consensus Estimate expects earnings to be $17.51 per share. The guidance assumes a 19%-19.5% tax rate, $21.1 million of interest income and no additional share repurchases after June 30.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 5.61% due to these changes.

VGM Scores

Currently, Medpace has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Medpace has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Medpace belongs to the Zacks Medical Services industry. Another stock from the same industry, Elevance Health (ELV), has gained 4.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Elevance Health reported revenues of $49.83 billion in the last reported quarter, representing a year-over-year change of +0.8%. EPS of $7.45 for the same period compares with $8.84 a year ago.

Elevance Health is expected to post earnings of $4.82 per share for the current quarter, representing a year-over-year change of -20.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.5%.

Elevance Health has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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

NOW Q2 Earnings Beat Estimates, Revenues Rise Y/Y

ServiceNow reported second-quarter 2026 earnings of 90 cents per share, up 11.1% year over year. The figure beat the Zacks Consensus Estimate by 4.65%. 

Revenues of $3.99 billion rose 24% year over year and surpassed the consensus mark by 1.65%. Results benefited from strong subscription demand, while current remaining performance obligations (cRPO) reached $13.20 billion.

NOW Gains From Broad Subscription Momentum

Subscription revenues increased 24.5% year over year to $3.88 billion. At constant currency (cc), subscription revenues rose 23%, 150 basis points (bps) above the high end of management’s guidance. 

Professional services and other revenues advanced 8.5% to $110 million. 

ServiceNow attributed the subscription outperformance to stronger net new annual contract value (NNACV) and a higher on-premise revenue mix, primarily from U.S. federal demand that shifted some revenues from the third quarter into the second quarter.

ServiceNow Builds Backlog and Expands Large Deals

In the second quarter of 2026, cRPO, or contracted revenues expected to be recognized within 12 months, grew 21% year over year. At cc, the metric increased 21.5%, exceeding guidance by 200 bps. Total remaining performance obligations (RPO) rose 21% year over year to $29 billion, or 22% at cc.

NOW recorded 123 transactions exceeding $1 million in NNACV, up nearly 40% year over year. The company ended the quarter with 658 customers generating more than $5 million in annual contract value, an increase of roughly 23%.

NOW’s AI and Workflow Portfolio Gains Traction

ServiceNow AI annual contract value crossed $1 billion. Net new AI annual contract value grew more than 40% sequentially, while deals containing at least five ServiceNow AI products increased 5.5 times year over year. The number of customers with Agentic AI in production expanded ninefold over the past nine months.

Demand was broad across workflows. ITSM appeared in 15 of the top 20 deals, ITOM in 18 and security and risk solutions in 16. CRM and industry workflows were also included in 16 of the top 20 deals, supported by momentum in configure-price-quote and sales and order management.

ServiceNow’s Operating Details

Non-GAAP total gross margin was 78%, down from 81% a year earlier. Subscription gross margin contracted 250 bps to 80.5%.

Non-GAAP operating income rose 22.8% year over year to $1.17 billion. Operating margin was unchanged at 29.5% and came in 300 bps above guidance due to revenue outperformance and the timing of spending, mainly in marketing.

NOW Generates Cash and Maintains Liquidity

ServiceNow ended the second quarter of 2026 with $2.50 billion in cash and cash equivalents. Current and long-term marketable securities totaled $4.20 billion. 

Net cash provided by operating activities was $587 million, compared with $716 million in the year-ago quarter. Free cash flow increased to $634 million from $535 million, while free cash flow margin slipped 50 bps to 16%.

ServiceNow Raises 2026 Subscription Outlook

For the third quarter of 2026, NOW expects subscription revenues between $3.975 billion and $3.980 billion, implying 20.5% year-over-year growth and 20% growth at cc. cRPOs are projected to increase 19.5%, or 20% at cc. Non-GAAP operating margin is expected to be 31%.

For 2026, ServiceNow raised its subscription revenue guidance to $15.76-$15.78 billion from $15.735-$15.775 billion. The midpoint increased by $15 million. The updated range represents 22.5% year-over-year growth and 21% growth at cc.

The company continues to expect an 81% non-GAAP subscription gross margin, a 31.5% non-GAAP operating margin and a 35% free cash flow margin for 2026. 

ServiceNow noted that stronger AI adoption and greater use of hyperscaler partnerships are reflected in the gross-margin outlook.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -6.01% due to these changes.

VGM Scores

At this time, ServiceNow has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

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

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

MOH Q2 Earnings Beat on Lower Operating Expenses, 2026 EPS View Raised

Molina Healthcare reported second-quarter 2026 adjusted earnings per share (EPS) of $1.51, which beat the Zacks Consensus Estimate by 10.2%. The bottom line declined 72.4% from the year-ago period's level.

Revenues amounted to $10.9 billion, which decreased 4.8% year over year. The top line marginally missed the consensus mark by 0.08%.

Second-quarter earnings benefited from lower operating expenses. However, lower premium revenues, declining membership, and weaker investment income weighed on its performance.

MOH’s Q2 Operational Update

Premium revenues of $10.2 billion decreased 5.7% year over year and missed the Zacks Consensus Estimate by 1.8%. The decline primarily reflected lower membership levels, partially offset by pricing actions.

As of June 30, 2026, total membership decreased 14.3% year over year to around 4.9 million and missed the Zacks Consensus Estimate by 1.6%. The health insurer witnessed a year-over-year decrease in customers across all segments, especially in Marketplace and Other.

Investment income declined 4.7% year over year to $101 million. The figure beat the Zacks Consensus Estimate by 1.8%.

Total operating expenses were $10.7 billion, down 2.9% year over year and slightly below our model estimate of $11 billion, driven by lower medical care costs. The adjusted general and administrative expense ratio increased to 6.5% from 6.1% a year ago. Interest expense increased 12.5% year over year to $54 million.

The consolidated MCR (medical costs as a percentage of premium revenues) was 92.2% in the reported quarter. It rose from 90.4% a year ago but was marginally below the Zacks Consensus Estimate of 92.5%.

Molina Healthcare’s adjusted net income decreased 73.8% year over year to $77 million.

MOH’s Q2 Financial Update

Molina Healthcare exited the second quarter with cash and cash equivalents of $5 billion, which increased from the 2025-end level of $4.2 billion. Total assets of $16 billion rose from $15.6 billion as of 2025-end.

Long-term debt totaled $3.8 billion, which remained unchanged from the 2025-end level.

Total stockholders’ equity of $4.2 billion inched up from $4.1 billion at the end of 2025.

Net cash provided by operating activities was $788 million compared to net cash used in operating activities of $112 million in the prior-year period.

MOH’s 2026 Guidance

The company's full-year 2026 premium revenue guidance has remained unchanged at about $42 billion, down roughly 2% from 2025.

Management expects 2026 GAAP earnings of at least $2.15 per diluted share, up from its previous guidance of at least $1.90. It also raised its full-year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per diluted share.

MOH raised its 2026 adjusted net income guidance to $268 million from $256 million. It also increased its GAAP net income guidance to $110 million from the previous estimate of $97 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -27.16% due to these changes.

VGM Scores

At this time, Molina has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.

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

Outlook

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

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

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

Liberty Energy Q2 Earnings Surpass Estimates, Revenues Increase Y/Y

Liberty Energy reported a second-quarter 2026 adjusted net profit of 9 cents per share, beating the Zacks Consensus Estimate of 7 cents. The outperformance was driven by the company’s focus on AI-driven technology advancements and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 12 cents due to increased year-over-year costs and expenses.

LBRT's revenues totaled $1.2 billion, which beat the Zacks Consensus Estimate of $1.1 billion. The top line also increased from the prior-year quarter’s $1 billion by 14%, supported by record utilization and a modest pricing uplift along with higher product sales.

Liberty Energy’s adjusted EBITDA was $151 million, representing a 16% decrease from the year-ago quarter’s $181 million. However, the figure beat our model estimate of $120.1 million.

Ahead of the earnings release, Liberty Energy’s board of directors approved a cash dividend of 9 cents per share on Class A common stock. The dividend will be payable on Sept. 18, 2026, to its shareholders on record as of Sept. 4.

The company distributed $15 million in cash dividends to its shareholders this quarter.

Q2 Costs & Expenses

Liberty Energy reported total costs and expenses of $1.2 billion in the second quarter, increasing 17% from the year-ago quarter’s level. Moreover, our estimate for the metric was pegged at $1 billion.

Other Important Updates

During this quarter, Liberty Energy continued to strengthen its long-term growth strategy through several strategic initiatives. The company formed a strategic alliance with SLB to deliver modular infrastructure and integrated power generation solutions for global data center projects while advancing related technologies. It also launched Liberty Wholesale Commodities (LWC), expanding its ChorusSM platform through direct participation in ERCOT power markets.

To support its power generation roadmap through 2030, Liberty Energy secured additional long-term equipment purchase agreements with leading OEMs. The company is also deploying its first digiPrimeSM fleet in Canada for a cross-border customer and has begun commercial operations of its proprietary SLXRRYTM last-mile sand slurry delivery system, which lowers delivered sand costs while reducing truck traffic, road wear, dust and emissions.

Joint Venture With PowerBridge

Liberty Energy announced a joint venture with PowerBridge to develop powered data center campuses, initially supporting a planned 2-GW facility in West Texas. The partnership will combine PowerBridge’s digital campus infrastructure with Liberty Power Innovations’ modular power generation and energy management capabilities to accelerate deployment for hyperscale and AI customers.

Balance Sheet & Capital Expenditure

As of June 30, Liberty Energy had approximately $555.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $1.3 billion represented a debt-to-capitalization of 39.5%. Further, the company’s total liquidity, including availability under the credit facility, amounted to $1 billion.

In the reported quarter, the company spent $221.5 million on its capital program, down from our estimate of $296 million.

Management Remarks & Outlook

LBRT’s management highlighted the company’s continued progress in strengthening its integrated power platform while reinforcing its leadership in completion services. The company emphasized that its LPI platform combines advanced power system architecture with energy market optimization, enabling flexible integration of power generation equipment from multiple global manufacturers.

During the quarter, LBRT expanded its supply chain by securing additional equipment purchase agreements with Bergen Engines, Wärtsilä and other leading suppliers, enhancing its ability to optimize power generation across diverse operating environments. The formation of Liberty Wholesale Commodities (LWC) further extends the company’s Chorus offering by enabling direct participation in ERCOT power markets while integrating on-site generation with both ERCOT and PJM markets for large-load customers. Management believes these initiatives strengthen the company’s ability to deliver resilient, integrated energy solutions while creating a differentiated competitive advantage. The company also reiterated its commitment to disciplined capital allocation, operational excellence and long-term investments that enhance shareholder value.

Looking ahead, management remains constructive on the long-term outlook for North American energy despite near-term geopolitical and macroeconomic uncertainties. The company expects heightened concerns surrounding global energy security and supply diversification to increase demand for North American oil, natural gas and refined products, supported by expanding LNG demand, storage infrastructure investments and replenishment of strategic reserves. While oil markets experienced considerable volatility during the quarter due to Middle East conflicts and supply chain disruptions, management believes these events reinforce the strategic importance of reliable North American energy supplies.

In the oilfield services business, modest improvements in frac activity and pricing, combined with sustained demand for next-generation technologies, are expected to support market recovery, although producer spending is likely to remain measured amid commodity price volatility. At the same time, accelerating investments in AI-driven data centers and industrial power infrastructure continue to create significant opportunities for the company’s integrated power business. Management noted that customers increasingly seek partners capable of delivering end-to-end power solutions encompassing infrastructure development, energy management and long-term operational support.

Entering the third quarter, LBRT remains encouraged by recent business momentum and is focused on executing growth opportunities across the evolving energy ecosystem while prudently navigating an uncertain global environment.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 11.7% due to these changes.

VGM Scores

Currently, Liberty Energy has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

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

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Liberty Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Liberty Energy is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Halliburton (HAL), a stock from the same industry, has gained 9.1%. The company reported its results for the quarter ended June 2026 more than a month ago.

Halliburton reported revenues of $5.71 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $0.55 for the same period compares with $0.55 a year ago.

Halliburton is expected to post earnings of $0.58 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -3.5%.

Halliburton has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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 investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Moody's due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Moody's Corporation before we dive into how investors and analysts have reacted as of late.

Moody's Q2 Earnings Beat on Rising Analytics Demand & Higher Issuances

Moody's reported second-quarter 2026 adjusted earnings of $4.68 per share, which outpaced the Zacks Consensus Estimate of $4.24. The bottom line jumped 31% from the year-ago quarter.

The results primarily benefited from an improvement in revenues. Steady demand for analytics and the robust performance of the Moody’s Investors Service segment supported the results. The company’s liquidity position was strong in the quarter. An increase in operating expenses acted as a headwind.

After considering certain non-recurring items, net income attributable to Moody's was $878 million, or $5.03 per share, up from $578 million, or $3.21 per share, in the prior-year quarter.

Revenues Improve, Costs Rise

Quarterly revenues were $2.19 billion, which surpassed the Zacks Consensus Estimate of $2.09 billion. The top line rose 15% year over year. 

Total expenses were $1.14 billion, up 5% year over year.

Adjusted operating income of $1.21 billion surged 25% year over year. The adjusted operating margin was 55.3%, up from 50.9% a year ago.

Strong Quarterly Segment Performance

Moody’s Investors Service revenues jumped 25% year over year to $1.3 billion. The rise was driven by broad-based performance across all lines of business

Moody’s Analytics revenues rose 4% to $925 million. The increase was driven by 2% growth in Decision Solutions, a 3% rise in Research and Insights and a 9% jump in Data and Information.

Solid Balance Sheet

As of June 30, 2026, Moody’s had total cash, cash equivalents and short-term investments of $1.5 billion, down from $2.45 billion as of Dec. 31, 2025.

The company had $6.38 billion in outstanding long-term debt.

Share Repurchase Update

In the first half of 2026, MCO repurchased $2.2 billion worth of shares.

2026 Guidance

Moody’s expects adjusted earnings in the range of $16.50-$17.00 per share, slightly narrower than the prior target range of $16.40-$17.00 per share. 

GAAP earnings are projected to be the band of $16.00-$16.50 per share, changed from the prior target of $16.00-$16.60 per share. 

Moody’s projects revenues to increase in the high-single-digit percent range.

Operating expenses are expected to be in the mid-single-digit range. Non-operating income is projected to be between $70 million and $90 million.

Net interest expenses are anticipated to be $220-$240 million.

The adjusted operating margin is expected to be 52-53%, while the operating margin is likely to be 44%- 45%.

Moody’s expects the cash flow from operations to be $3.15-$3.35 billion. The free cash flow is projected to be in the $2.7-$2.9 billion range.

The effective tax rate is projected to be 23-25%.

2026 Segment Guidance

MIS segment revenues are expected to increase in the high-single-digit range. The adjusted operating margin is expected to be roughly 65%.

Coming to the MA segment, Moody’s anticipates revenues to rise in the mid-single-digit range, while Annualized Recurring Revenue (ARR) is expected to increase in the high-single-digit range. Further, an adjusted operating margin is expected to be 34-35%.

 

Strategic and Operational Efficiency Restructuring Program

In December 2024, Moody’s CEO approved a Strategic and Operational Efficiency Restructuring Program aimed at improving efficiency and focusing on growth areas. The initiative is expected to generate annual savings of $250–$300 million by consolidating functions, reducing staff, exiting leased office spaces and retiring legacy software. The program involves $170–$200 million in pre-tax personnel-related restructuring charges and an additional $30–$50 million in non-cash charges. It is projected to strengthen operating margins and support strategic investments, with substantial completion by the end of 2026 and related cash outlays (to be between $210-$230 million) continuing through 2027.

Moody’s expanded its Strategic and Operational Efficiency Restructuring Program in July 2026, targeting $300–$350 million in annualized savings. The program focuses on workforce reductions, office consolidation, legacy software retirement, and exits from certain businesses, including the MA Regulatory Solutions divestiture. Moody’s expects $285–$330 million in personnel-related restructuring charges, plus modest non-cash charges related to office exits and software amortization. The program is expected to be substantially completed by end-2027, with cash outlays continuing through 2028. Savings are expected to support margin expansion and strategic investments.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

VGM Scores

Currently, Moody's has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

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

Outlook

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

Performance of an Industry Player

Moody's belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Synchrony (SYF), has gained 6.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Synchrony reported revenues of $4.61 billion in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $2.59 for the same period compares with $2.50 a year ago.

For the current quarter, Synchrony is expected to post earnings of $2.38 per share, indicating a change of -16.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Synchrony. Also, the stock has a VGM Score of B.

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

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

Las Vegas Sands Q2 Earnings & Revenues Miss Estimates, Down Y/Y

Las Vegas Sands reported weak second-quarter 2026 results, with adjusted earnings and net revenues missing the Zacks Consensus Estimate and declining on a year-over-year basis. 

The company’s results were hurt by unusually low rolling-play hold in Macao. Nonetheless, gaming volumes increased across all Macao segments, while Marina Bay Sands’ mass gaming revenues rose 5% year over year to $886 million.

LVS’ Q2 Highlights

Las Vegas Sands reported adjusted earnings per share of 59 cents, missing the Zacks Consensus Estimate of 77 cents by 23.4%. In the second quarter of 2025, the company reported adjusted earnings of 79 cents per share.

Quarterly net revenues of $3.15 billion missed the consensus mark of $3.37 billion by 6.4% and declined 0.7% from $3.18 billion reported in the prior-year quarter.

Las Vegas Sands’ Asian Operations

Macao operations generated net revenues of $1.79 billion in the second quarter of 2026, down 0.4% from $1.80 billion reported in the prior-year quarter.

Adjusted property EBITDA declined 24% year over year to $430 million from $566 million. Gaming volumes increased year over year across rolling tables, non-rolling tables and slots or electronic table games. However, unusually low rolling-play hold reduced Macao adjusted property EBITDA by $87 million in the reported quarter.

The Venetian Macao

Net revenues from The Venetian Macao were $591 million in the second quarter of 2026, down 10.9% from $663 million reported in the prior-year quarter.

Adjusted property EBITDA declined 30.1% to $165 million from $236 million reported in the year-ago quarter. Table games win per unit per day decreased to $8,819 from $9,710 in the second quarter of 2025, while slot machine win per unit per day increased to $446 from $305 reported in the prior-year quarter.

The Londoner Macao

Net revenues from The Londoner Macao increased 10.6% year over year to $710 million in the reported quarter from $642 million.

Adjusted property EBITDA decreased 6.3% to $192 million from $205 million reported in the prior-year quarter. Rolling-chip volume increased to $3.52 billion from $2.09 billion in the year-ago quarter, while non-rolling chip drop rose to $2.58 billion from $2.20 billion.

The property’s hotel revenue per available room increased to $254 from $242 reported in the second quarter of 2025. Occupancy improved to 96.7% from 93.3% in the prior-year quarter.

The Parisian Macao

Net revenues from The Parisian Macao increased 12.4% to $218 million in the second quarter of 2026 from $194 million reported in the prior-year quarter. Casino revenues rose to $165 million from $143 million in the year-ago period.

Adjusted property EBITDA decreased 13.6% to $38 million from $44 million reported in the second quarter of 2025. Non-rolling chip drop increased to $816 million from $663 million in the prior-year quarter.

The property’s hotel RevPAR declined to $138 from $146 reported in the year-ago quarter. Occupancy decreased to 97.4% from 99.2% in the prior-year period.

The Plaza Macao and Four Seasons Macao

Net revenues from The Plaza Macao and Four Seasons Macao declined 29.4% to $137 million in the reported quarter from $194 million in the second quarter of 2025.

Casino revenues decreased to $59 million from $122 million reported in the prior-year quarter, while mall revenues increased to $41 million from $37 million.

Adjusted property EBITDA fell 69.7% to $20 million from $66 million reported in the prior-year quarter. Rolling-chip volume increased to $2.82 billion from $1.40 billion in the second quarter of 2025, while non-rolling chip drop rose to $839 million from $655 million.

The property’s RevPAR increased to $482 from $462 in the prior-year period. Occupancy improved to 95.1% from 92.1% reported in the second quarter of 2025.

Sands Macao

Net revenues from Sands Macao increased 33.8% to $95 million in the second quarter of 2026 from $71 million reported in the prior-year quarter. Casino revenues rose to $88 million from $63 million in the year-ago period.

Adjusted property EBITDA increased 22.2% year over year to $11 million from $9 million. Non-rolling chip drop rose to $497 million from $389 million in the prior-year quarter.

The property’s hotel RevPAR decreased to $161 from $175 reported in the year-ago quarter, while occupancy remained unchanged at 99.4%.

Marina Bay Sands, Singapore

Net revenues from Marina Bay Sands decreased 0.6% year over year to $1.38 billion in the reported quarter.

Adjusted property EBITDA declined 10.3% year over year to $689 million. Rolling-chip volume increased to $9.27 billion from $8.95 billion in the year-ago quarter, while non-rolling chip drop rose to $2.60 billion from $2.36 billion.

The property’s hotel RevPAR increased to $939 from $844 in the second quarter of 2025. Occupancy improved to 95.6% from 95% reported in the prior-year quarter.

Las Vegas Sands’ Operating Results

On a consolidated basis, adjusted property EBITDA declined 16.1% year over year to $1.12 billion in the second quarter of 2026.

Operating income decreased to $618 million from $783 million reported in the year-ago quarter, while net income declined to $373 million from $519 million.

Las Vegas Sands’ Financials

As of June 30, 2026, Las Vegas Sands had unrestricted cash balances of $3.38 billion compared with $3.45 billion as of June 30, 2025. Total debt outstanding, net of deferred financing costs and original issue discounts and excluding finance leases, was $15.11 billion compared with $15.68 billion reported in the prior-year quarter.

In the reported quarter, capital expenditures totaled $332 million, up from $286 million in the year-ago quarter. The latest-quarter expenditures comprised construction, development and maintenance activities of $215 million at Marina Bay Sands, $86 million in Macao and $31 million in corporate and other activities.

As of June 30, 2026, $29 million remained available under the share repurchase program. Subsequently, on July 21, 2026, the board increased the remaining authorization to $6 billion and extended the program’s expiration date to July 21, 2029.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Las Vegas Sands has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.

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

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Las Vegas Sands has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

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

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

Southwest Airlines Q2 Earnings Beat Estimates

Southwest Airlines reported second-quarter 2026 adjusted earnings of 94 cents per share, up 118.6% year over year and 80.8% above the Zacks Consensus Estimate of 52 cents. Record operating revenues of $8.43 billion rose 16.4% but missed the consensus mark of $8.58 billion by 1.7%.

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

LUV's Passenger Revenues Power Top-Line Growth

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

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

Southwest Airlines Posts Stronger Revenue Productivity

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

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

LUV Controls Non-Fuel Costs as Fuel Expense Surges

Total operating expenses increased 16.1% year over year to $8.15 billion. Aircraft fuel and related taxes surged 67% to $2.22 billion, representing the largest cost headwind during the quarter.

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

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

Southwest Airlines' Commercial Initiatives Gain Traction

Managed business revenues reached a quarterly record and increased 30% year over year. The performance highlighted stronger demand from corporate customers and broadened the company’s revenue mix.

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

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

LUV Generates Higher Operating Cash Flow

Southwest ended June with cash and cash equivalents of $3.79 billion, up from $3.23 billion at the end of 2025. Total liquidity was $5.3 billion, including a $1.5 billion revolving credit facility.

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

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

Southwest Airlines Issues Q3 and 2026 Guidance

For third-quarter 2026, Southwest expects adjusted earnings of 50-75 cents per share. Capacity is projected to decline 1% to remain flat, while unit revenues are forecast to increase 17.5-19.5% year over year.

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

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

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -12.83% due to these changes.

VGM Scores

Currently, Southwest has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.

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

Outlook

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

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

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

IBM Q2 Earnings Meet Estimates, Revenue Misses on Deal Delays

IBM reported relatively modest second-quarter 2026 results with adjusted earnings of $2.93 per share, up 5% year over year and in line with the Zacks Consensus Estimate. Revenues rose 1.1% to $17.16 billion but missed the consensus mark of $17.32 billion by 0.9%. 

The top-line miss reflected delayed large, capital-expenditure-sensitive software transactions and weaker IBM Z revenues. Software annual recurring revenue reached $24.6 billion, up 8% year over year, supported by continued strength in Red Hat, HashiCorp and Confluent. 

Software Growth Slows on Transaction Timing

Software revenues increased 5.1% year over year to $7.76 billion. Hybrid Cloud revenues rose 11%, while Data advanced 19%, or 18% at constant currency. Automation grew 4%, or 3% at constant currency.

Transaction Processing revenues fell 8%, or 9% at constant currency, as clients redirected spending toward servers, storage and memory amid supply constraints and expected price increases. Management observed that several large deals did not close on schedule, accounting for most of the quarterly shortfall. 

About 80% of annual software revenues are recurring, comprising subscription, consumption and support streams. This portion delivered healthy growth, while OpenShift annual recurring revenue reached $2.2 billion.

HashiCorp posted another record-bookings quarter, while Confluent remained on track after its first full quarter since the acquisition. Software segment profit rose 9% to $2.50 billion, lifting margin 110 basis points (bps) to 32.2%.

Consulting Gains from AI Transformation Demand

Consulting revenues were nearly flat at $5.33 billion, up 1% in constant currency. Strategy and Technology and Intelligent Operations each increased 1% on a constant-currency basis. Signings grew 6% to $5.0 billion, marking a second consecutive quarter of growth. Generative AI represented about 50% of signings and more than 30% of backlog. Segment profit increased 15.1% to $647 million, while margin expanded 160 bps to 12.1%. 

Infrastructure Segment Mix Weighs

Infrastructure revenues declined 7.4% to $3.84 billion. Hybrid Infrastructure fell 10%, reflecting a 42% plunge in IBM Z revenues, while Infrastructure Support slipped 1%. Distributed Infrastructure surged 37% and delivered its strongest quarterly growth on record. Power and Storage exited the quarter with nearly $500 million of backlog. Infrastructure segment profit declined 13% to $835 million, and margin contracted 150 bps to 21.8%.

IBM Expands Operating Profit Despite Gross Margin Pressure

Non-GAAP gross profit was $10.19 billion, essentially flat year over year, while non-GAAP gross margin declined 70 bps to 59.4%. The pressure mainly reflected the revenue shortfall and business mix.

Non-GAAP pre-tax income rose 3% to $3.29 billion, with margin expanding 30 bps to 19.2%. Adjusted EBITDA increased 2% to $4.8 billion, and margin improved about 20 bps to 27.8%, aided by productivity initiatives.

IBM Maintains Cash Flow Discipline

IBM generated $2.6 billion in operating cash flow during the quarter, up $0.9 billion year over year. Free cash flow was $2.5 billion, down $0.3 billion, while first-half free cash flow remained flat at $4.8 billion.

The company ended June with $8.20 billion in cash, restricted cash and marketable securities. Total debt was $62 billion, including $13 billion of IBM Financing debt. IBM returned $1.59 billion to shareholders through quarterly dividends. 

IBM Trims Revenue View but Raises Margin Target

For 2026, IBM now expects constant-currency revenue growth of 4% to 5%, down from its prior expectation of more than 5%. The company continues to expect free cash flow to increase by about $1 billion year over year.

Software growth is projected at 6% to 8%, while Infrastructure is expected to grow in the low single digits. Consulting growth is forecast to accelerate to the low-to-mid-single-digit range. IBM now expects 100 bps of operating pre-tax margin expansion for the year. 

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

At this time, IBM has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

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

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, IBM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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

Knight-Swift Q2 Earnings Beat Estimates

Knight-Swift reported second-quarter 2026 adjusted earnings of 63 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 28.6% and increased 80.0% year over year. Stronger pricing and network efficiency across asset-based operations supported the improvement.

Total revenues of $2.10 billion surpassed the consensus mark of $2.01 billion by 4.3% and rose 12.6% year over year. Truckload revenue per loaded mile, excluding fuel surcharge and intersegment transactions, increased 5.5%.

KNX’s Consolidated Profitability Improves

Revenue excluding truckload and LTL fuel surcharge increased 5.5% year over year to $1.76 billion. Operating income rose 44.4% to $104.85 million, while adjusted operating income advanced 45.5% to $150.95 million.

The consolidated operating ratio improved 110 basis points to 95.0%. The adjusted operating ratio improved 240 basis points to 91.4%, reflecting better pricing and network efficiency across the asset-based businesses. Adjusted net income climbed 79.7% to $102.75 million.

Knight-Swift’s Truckload Engine Accelerates

Truckload revenues, excluding fuel surcharge and intersegment transactions, increased 2.8% year over year to $1.10 billion. The gain came despite a 2.6% decline in loaded miles, as tighter driver availability pressured the seated tractor count.

Adjusted operating income surged 69.4% to $98.92 million. The adjusted operating ratio improved 360 basis points to 91.0%, helped by pricing gains and a 140-basis-point reduction in empty miles. U.S. Xpress’ over-the-road division achieved its first profitable quarter since the acquisition.

KNX’s LTL Mix Supports Margin Recovery

Less-than-truckload revenues, excluding fuel surcharge, declined 1.4% to $333.01 million as shipments per day fell 3.7%. However, daily tonnage increased 4.0%, weight per shipment rose 7.9% and length of haul expanded 5.3%.

Revenue per shipment, excluding fuel surcharge, grew 3.4%, while revenue per hundredweight fell 4.2% because of heavier shipments. Adjusted operating income increased 13.3% to $26.45 million, and the adjusted operating ratio improved 100 basis points to 92.1%.

Knight-Swift’s Logistics and Intermodal Diverge

Logistics revenues rose 8.9% to $139.70 million, driven by a 29.6% increase in revenue per load, partly offset by a 16.4% drop in load count. Gross margin contracted 350 basis points to 15.4% as purchased transportation costs increased faster than customer pricing. Adjusted operating income declined 25.7%.

Intermodal revenues jumped 34.9% to $113.39 million. Load count increased 19.6% and revenue per load rose 12.8%, helping the segment post operating income of $0.65 million versus a $3.43 million loss a year earlier. Its operating ratio improved 470 basis points to 99.4%.

KNX’s Other Businesses Face Special Charges

All Other Segments’ revenues increased 41.8% year over year to $105.56 million, supported by growth in warehousing and trailer leasing. These businesses generated an additional $7 million of income contribution compared with the prior-year quarter.

The segment recorded an operating loss of $10.43 million compared with income of $6.75 million a year earlier. Results included $5.8 million of accounts receivable securitization costs and an $18.2 million severance charge primarily tied to the former executive chairman’s retirement.

Knight-Swift’s Liquidity and Capital Spending

Knight-Swift ended June with $186.11 million in cash and cash equivalents. Year-to-date operating cash flow was $450.36 million, while free cash flow totaled $190.44 million after $259.92 million of net capital expenditures.

The company issued $1.50 billion of 1% convertible notes and used proceeds to repay floating-rate borrowings. Management expects the refinancing to generate roughly $44 million of annual pretax savings. Full-year net cash capital expenditures remain projected at $600-$650 million.

KNX’s Q3 Outlook Points Higher

KNX expects third-quarter 2026 adjusted earnings of 71-77 cents per share. Truckload revenue, excluding fuel surcharge, is projected to rise by a mid-single-digit percentage, with the adjusted operating ratio improving 650-750 basis points year over year.

LTL revenue, excluding fuel surcharge, is expected to grow by a low-single-digit percentage, with the adjusted operating ratio in the low 90s. Logistics performance is expected to remain fairly stable sequentially, while intermodal revenue is projected to increase by a low-single-digit percentage from the second quarter.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 8.2% due to these changes.

VGM Scores

At this time, Knight-Swift has a great Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for value investors.

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

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Knight-Swift has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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

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

Kinder Morgan Q2 Earnings Beat Estimates

Kinder Morgan reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents in the year-ago quarter.

Revenues increased 10.8% year over year to $4.48 billion from the prior year’s figure of $4.04 billion. Revenues surpassed the consensus estimate of $4.29 billion by 4.43%.

Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.

KMI's Natural Gas Business Leads Growth

Natural Gas Pipelines adjusted segment earnings before depreciation, depletion and amortization (EBDA) expenses increased to $1.46 billion from $1.35 billion a year earlier. Higher contributions from the Texas Intrastate system and gathering assets supported the improvement.

Transportation volumes averaged 47,886 billion British thermal unit per day (BBtu/d) compared with 44,818 BBtu/d in the prior-year quarter. Growth reflected higher LNG deliveries on the Tennessee Gas Pipeline, stronger Texas Intrastate demand, higher export volumes to Mexico and increased power-generation demand in Arizona.

Gathering volumes advanced to 4,637 BBtu/d from 3,692 BBtu/d. KinderHawk volumes rose 54%, supported by increased Haynesville activity. Management noted that the system is effectively full and is adding 1 billion cubic feet per day of treating capacity.

Kinder Morgan's Other Segments Advance

Products Pipelines adjusted segment EBDA increased to $339 million from $289 million. Higher commodity prices and stronger butane blending volumes and rates more than offset weaker transportation activity.

Due to a temporary disruption of the West Coast supply and higher commodity prices, total refined product volumes declined 5% to 1.62 million barrels per day (MMBbl/d) from the year-ago figure of 1.71 MMBbl/d. Crude and condensate volumes fell 16% to 421,000 barrels per day (Bbl/d), largely because the Double H system was converted from crude oil to natural gas liquids service.

Terminals adjusted segment EBDA rose to $309 million from $300 million. Higher liquids terminal rates, ancillary fees and favorable commodity pricing supported results. Liquids utilization was 93%, while the Jones Act tanker fleet remained fully contracted for 2026.

CO2 adjusted segment EBDA increased to $207 million from $145 million. Total net oil production increased 10% to 28,040 Bbl/d, driven by a 15% rise in SACROC production. The realized weighted average oil price increased to $73.78 per barrel from $67.60, while the realized weighted average NGL price was $33.38 per barrel, higher than the $32.08 per barrel recorded a year earlier.

KMI's Cost Profile Supports Profit Growth

Total operating costs, expenses and other expenditures increased 8.3% year over year to $3.13 billion. Costs of sales rose to $1.41 billion from $1.21 billion, while operations and maintenance expenses increased to $806 million from $773 million.

Operating income increased 16.8% to $1.35 billion. The operating margin expanded to 30.1% from 28.5%, reflecting revenue growth that outpaced increases in operating expenses.

Adjusted EBITDA reached a second-quarter record of $2.20 billion, up 12% year over year. Net income attributable to KMI increased 21% to $867 million, while reported earnings rose to 39 cents per share from 32 cents.

Kinder Morgan Expands Project Pipeline

The project backlog stood at $9.6 billion at the end of the quarter, down from $10.1 billion sequentially after approximately $660 million of expansion projects entered service. Natural gas projects represented about 92% of the backlog.

The board also granted contingent approval to nearly $400 million of projects that will enter the backlog after contract execution. Management expects to sanction significant additional projects from an opportunity set exceeding $10 billion during the second half of 2026.

Kinder Morgan's Cash Flow & Balance Sheet

Cash flow from operations was $1.96 billion in the quarter. Meanwhile, free cash flow was $978 million and free cash flow after dividends reached $313 million.

As of June 30, 2026, KMI reported $89 million in cash and cash equivalents. Net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.

KMI Raises 2026 Outlook

Kinder Morgan expects full-year adjusted earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) to exceed its original $8.6 billion budget by more than 5%. The company also expects adjusted earnings to surpass its initial $1.36-per-share budget by more than 12%.

The revised guidance reflects strong first-half performance across all business segments.

KMI’s Dividend Growth

The quarterly dividend was raised 2% to 29.75 cents per share, equivalent to $1.19 per share annually. The dividend is payable Aug. 17, 2026, to shareholders of record as of Aug. 3.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in fresh estimates.

VGM Scores

Currently, Kinder Morgan has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

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

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Kinder Morgan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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

Will the recent positive trend continue leading up to its next earnings release, or is Iridium due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Iridium Communications Inc before we dive into how investors and analysts have reacted as of late.

Iridium Q2 Earnings Miss Estimates

Iridium reported earnings per share (EPS) of 9 cents for the second quarter of 2026, missing the Zacks Consensus Estimate of 26 cents. The bottom line also compared unfavorably with the prior-year quarter's figure of 20 cents. Management attributed most of the decline to transaction costs related to the pending Rocket Lab Corporation acquisition and higher cash-based employee incentive compensation.

Iridium reported second-quarter revenue of $225.2 million, representing 4% year-over-year growth. The consensus mark was pinned at $221.2 million. The biggest headline remains Rocket Lab's planned acquisition of Iridium. Rather than operating independently, Iridium is likely to become part of a vertically integrated space company spanning satellite manufacturing, launch services, space systems, global communicationsand government space infrastructure. For Iridium, Rocket Lab provides direct access to satellite manufacturing expertise, launch capacity and potentially lower deployment costs for future constellation upgrades.Management believes this integration will accelerate innovation while improving operational efficiency over time.

The most compelling aspect of the quarter is Iridium's progress across four major growth initiatives, which is likely to open new market avenues. Iridium introduced the Iridium 9604 tri-mode communication module, combining satellite connectivity, LTE-M cellular and GNSS positioning. This integrated approach simplifies hardware development while lowering deployment costs for enterprise customers. Later this year, it also plans to launch Iridium NTN Direct, enabling standards-based direct-to-device satellite connectivity.

The recent commercial launch of Iridium's PNT ASIC significantly expands opportunities beyond communications. If adoption accelerates, Assured PNT could evolve into an entirely new recurring revenue platform. Iridium continues to strengthen its role within the U.S. defense infrastructure. Its work supporting the Space Development Agency's Proliferated Warfighter Space Architecture demonstrates that Iridium is becoming an increasingly strategic technology partner rather than simply a communications provider. As defense spending shifts toward space-based infrastructure, this business could generate substantial long-term opportunities.

The major strategic move was completing the acquisition of Aireon LLC, operator of the world's only space-based ADS-B aircraft surveillance network. Management expects the acquisition to contribute approximately $100 million in annual service revenue and $30 million in annual OEBITDA.

Segmental Details

Total Service revenues rose 4% year over year to $161.3 million. Service revenues contributed 72% to total revenues in the second quarter. Our estimate for the metric was $159.9 million. Commercial services generated $133.7 million, representing 59% of total company revenue. Several business verticals contributed. Commercial IoT revenue increased 5%, hosted payload and data services rose 14% and voice and traditional data services grew 3%. Government services continue providing stability.

Revenue from U.S. government customers increased 3% to $27.6 million, primarily due to contractual pricing increases under the Enhanced Mobile Satellite Services (EMSS) contract. The U.S. government remains Iridium's largest customer and represents nearly all engineering and support services revenue. Importantly, management expects renewal of the EMSS contract by March 2027. Given the increasing geopolitical tensions and growing military reliance on resilient satellite communications, this business should remain a dependable source of recurring revenue.

Subscriber Equipment sales increased 7% to $20.8 million. We projected the figure to be $18.2 million.

Engineering and support revenues jumped 3% to $43.1 million, led by Iridium’s expanding work with the Space Development Agency, reinforcing its emphasis on growth driven by national security programs. Our estimate was $42 million.

Other Details

Total operating expenses were 191.2 million compared with $166.6 million in the prior-year quarter, primarily due to higher depreciation and amortization costs and selling, general and administrative expenses.

OEBITDA remained relatively stable at $119.1 million, only slightly below last-year quarter’s $121.3 million. The decline was largely due to a change in compensation structure, shifting to fully cash-based incentives. This added about $3.9 million in expenses for the quarter. 

Operating income came in at $34 million compared with $50.3 million reported in the year-ago quarter.

The company ended the quarter with 2,627,000 billable subscribers, a 6% increase from the previous-year quarter. Commercial IoT remained the primary growth engine as enterprises continue deploying connected sensors and remote monitoring systems across industries such as logistics, agriculture, energy and environmental monitoring. The continued growth of commercial IoT subscribers, which increased 9%, is encouraging.

Capital Structure Remains Manageable

Iridium continues investing aggressively. Capital expenditures totaled $21.8 million during the quarter. As of June 30, 2026, gross debt reached approximately $1.8 billion with cash balance of $184.2 million.

As part of its capital return program, Iridium paid a second-quarter dividend of 15 cents per share on June 30, 2026, distributing $16.2 million to shareholders

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

At this time, Iridium has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

Iridium has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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

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

Community Health Q2 Loss Wider Than Expected, 2026 View Lowered

Community Health reported a second-quarter 2026 net loss of 19 cents per share, missing the Zacks Consensus Estimate of a loss of 18 cents. The bottom line deteriorated significantly from a loss of 5 cents per share in the prior-year quarter.

Net operating revenues declined 9.8% year over year to $2.8 billion in the quarter under review and missed the consensus estimate by 2.5%.

The quarterly results were affected by hospital divestitures and lower patient days, partially offset by growth in same-store admissions.

CYH’s Q2 Operational Update

At the end of the second quarter, Community Health operated 60 hospitals, down from 70 in the year-ago period. Patient days declined 11.9% year over year, while the average length of stay remained flat. The occupancy rate improved to 52.5% from 50.8% in the prior-year quarter.

Adjusted admissions fell 11.7% year over year in the quarter under review. On a same-store basis, admissions rose 1.9% from the corresponding prior-year period.

As of June 30, 2026, CYH had 8,863 licensed beds, reflecting a 15.4% decline from the year-ago quarter. The reported figure missed the Zacks Consensus Estimate by 0.2%.

Total operating expenses declined 7.1% year over year to $2.4 billion in the second quarter, primarily backed by lower supply costs, other operating expenses, salaries and benefits costs. The metric came below our model estimate of $2.6 billion.

Net interest expense decreased 3.7% year over year to $206 million, but was higher than our estimate of $203.3 million.

The company reported a net income of $104 million in the second quarter compared with $320 million in the year-ago period, reflecting a significant deterioration in profitability. Adjusted EBITDA fell 13.2% year over year to $330 million in the quarter under review due to divestments, elevated medical specialist fees and an unfavorable change in payor mix.

CYH’s Financial Update (As of June 30, 2026)

Community Health exited the second quarter with cash and cash equivalents of $149 million, which decreased from $260 million at the 2025-end level. Total assets of $12.2 billion decreased from $13.2 billion at the 2025-end level.

Long-term debt amounted to $9.6 billion, which fell from $10.4 billion at the 2025-end level. Current maturities of long-term debt amounted to $26 million.

The company reported net cash used in operating activities of $209 million in the first half of 2026 against net cash provided by operating activities of $208 million in the prior-year period.

CYH Trims 2026 Guidance

The company now anticipates net operating revenues between $11.4 billion and $11.6 billion for 2026, down from the previously expected range of $11.6 billion and $12 billion.

Adjusted EBITDA is now estimated to be in the range of $1.30-$1.38 billion, compared with the earlier projected range of $1.34-$1.49 billion.

Community Health now expects a 2026 loss of $1.10-$1.25 per share, wider than its previous guidance of a loss of 60 cents to break-even.

Depreciation and amortization expenses are now predicted to be in the range of $430-$450 million for 2026.

Net cash from operating activities is now estimated to be between $300 million and $500 million in 2026. Capital expenditures are still anticipated in the range of $350-$400 million.

The weighted average common shares outstanding are currently estimated at around 136 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -160% due to these changes.

VGM Scores

Currently, Community Health Systems has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.

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

Outlook

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

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

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

Alphabet Q2 Earnings & Revenues Beat Estimates, Up Y/Y

Alphabet reported second-quarter 2026 earnings of $9.11 per share, comfortably beating the Zacks Consensus Estimate of $2.88 per share and significantly higher than $2.31 per share reported in the year-ago quarter. The sharp increase primarily reflected unrealized gains in the company’s equity securities portfolio.

Consolidated revenues jumped 24% year over year to $119.80 billion. Net revenues, excluding traffic acquisition costs, increased 26.8% year over year to $103.62 billion, surpassing the Zacks Consensus Estimate by 2.31%. Google Cloud’s 82% year-over-year growth and $514 billion backlog were key highlights in the reported quarter.

GOOGL’s Services Benefit From Search Growth

Google Services revenues increased 15% year over year to $94.54 billion. Segment operating income rose 20% to $39.54 billion, while the operating margin expanded to 41.8% from 40.1% reported in the year-ago quarter.

Google Search & other revenues climbed 17% year over year to $63.27 billion, with retail and finance making the largest contributions. Alphabet stated that AI-powered Search experiences continued to drive query growth. AI Mode surpassed one billion monthly active users after its global expansion.

YouTube advertising revenues advanced 13% to $11.06 billion, supported by direct-response and brand advertising. More than 1.7 billion unique viewers watched World Cup-related videos on YouTube, providing an additional boost to advertising demand.

Alphabet’s Cloud Business Accelerates Sharply

Google Cloud revenues hit $24.77 billion. The strong year-over-year growth was driven by Google Cloud Platform, enterprise AI solutions, AI infrastructure and core services. The company also began recognizing revenues from TPU system sales to customer data centers.

Cloud operating income more than tripled to $8.81 billion from $2.83 billion reported in the year-ago quarter. The segment’s operating margin expanded to 35.6% from 20.7%, reflecting strong revenue growth and improved operating leverage.

Cloud backlog reached $514 billion, increasing by more than $50 billion sequentially. Alphabet expects to recognize slightly more than half of this backlog as revenues over the next 24 months. Nearly 90% of Fortune 100 companies now use Gemini Enterprise.

Alphabet’s AI Adoption Supports Core Businesses

Gemini model APIs processed roughly 22 billion tokens per minute, up from more than 16 billion in the previous quarter. More than 9 million developers used Alphabet’s models each month, while nearly 500 Cloud customers processed more than one trillion tokens each over the past year.

The Gemini app reached 950 million monthly active users, with daily active users tripling year over year. Alphabet also reported strong adoption of Gemini-powered advertising tools, including AI Max and Performance Max.

Advertisers using these AI-powered campaigns generated an average of 15% more conversions or conversion value on Search at a similar return on advertising spending. Management remained encouraged by monetization on queries featuring AI Overviews and continued testing new ad formats within AI Mode.

GOOGL’s Operating Margin Expands Despite Rising Costs

Alphabet’s operating income increased 30.4% year over year to $40.77 billion. The consolidated operating margin expanded 160 basis points to 34%, as revenue growth exceeded the increase in total costs and expenses.

Total costs and expenses rose 21% year over year to $79.03 billion. Research and development expenses increased 32% year over year to $18.22 billion, driven by AI-related hiring, compensation and depreciation. Sales and marketing expenses grew 18% year over year to $8.40 billion, while general and administrative expenses advanced 24% to $6.46 billion.

Other income totaled $97.98 billion compared with $2.66 billion a year earlier. The increase mainly reflected unrealized gains on equity securities and was the primary factor behind the outsized increase in net income and earnings per share.

GOOGL’s Cash Flow Faces Heavy Infrastructure Spending

Alphabet ended the second quarter of 2026 with $242.47 billion in cash, cash equivalents and marketable securities, while long-term debt stood at $98.17 billion.

Operating cash flow totaled $39.07 billion, up from $27.75 billion in the year-ago quarter. Capital expenditures doubled to $44.92 billion, with most spending directed toward servers, data centers and networking infrastructure for AI.

The elevated investment resulted in negative free cash flow of $5.86 billion. Trailing 12-month free cash flow was $53.27 billion.

Alphabet Raises Its 2026 Capital Spending View

Alphabet raised its 2026 capital expenditure guidance to $195-$205 billion from $180-$190 billion. The increase reflects accelerated capacity deployment to meet demand for AI infrastructure and Cloud services.

Management expects capital expenditures to increase significantly again in 2027. Higher depreciation, data-center operating costs and energy expenses are expected to pressure profitability, while third-party capacity usage could create modest near-term pressure on Cloud margins.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Alphabet has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

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

Outlook

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

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

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

Globe Life Q2 Earnings Miss Estimates on Escalating Expenses

Globe Life Inc. reported second-quarter 2026 net operating income of $3.61 per share, which missed the Zacks Consensus Estimate of $3.67 by 1.6%. The bottom line, however, improved 10% year over year, driven by higher insurance underwriting income. The quarter benefited from higher premium revenues, stronger insurance underwriting income, and increased investment income. Higher premium revenues reflected continued strength across the company’s life and health insurance businesses.

GL Benefits From Premium Growth Across Insurance Business

Total premium revenues increased 7% year over year to $1.30 billion. Life insurance premiums rose 3% to $860.8 million, while health insurance premiums climbed 16% to $436.9 million, supported by strong growth at United American and Family Heritage. Operating revenues increased 8% year over year to $1.60 billion, driven by higher premium income, stronger net investment income and realized investment gains. The top line surpassed the Zacks Consensus Estimate by 0.6%.

Globe Life Posts Higher Underwriting and Investment Income

Insurance underwriting income increased 5% year over year to $370.3 million. Life underwriting income rose 6% to $359.4 million, while health underwriting income edged up 1% to $99.3 million. Net investment income rose 4% year over year to $293.8 million. Excess investment income, a key profitability measure, rose 10% to $38.3 million as higher investment income more than offset increased required interest on policy liabilities.

Administrative expenses were up 6.2% year over year to $91.4 million.
Total benefits and expenses increased 6.5% year over year to $1.2 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes and non-deferred acquisition costs, interest expense and other operating expense.

GL's Distribution Channels Deliver Mixed Results

Life insurance premium growth was led by the American Income division, where premiums increased 5% year over year to $466.3 million. Liberty National premiums rose 3%, while Direct to Consumer premiums slipped 1%. Overall life net sales declined 3% to $149.6 million as weaker Direct to Consumer sales more than offset Liberty National's gains.

Health insurance continued to outperform. United American health premiums surged 29% year over year to $211.4 million, while Family Heritage premiums increased 9%. Total health net sales improved 2% to $70.4 million, supported by double-digit growth at United American despite softer performance at Liberty National and American Income.

Globe Life Strengthens Capital Position

Book value per share increased 18% year over year to $78.18. Excluding accumulated other comprehensive income (AOCI), book value per share rose 11% to $100.04. Net income return on equity was 18.4% for the first six months of 2026, down 40 basis points year over year. Net operating income return on equity, excluding AOCI, was 14.3%, down 10 basis points year over year. During the reported quarter, Globe Life repurchased 1.1 million shares for $175 million at an average price of $154.28 per share, continuing its shareholder return strategy.

GL Raises 2026 Earnings Outlook

Globe Life raised its full-year 2026 net operating income guidance to a range of $15.55-$15.95 per share, suggesting a 10-cent increase at the midpoint from its prior outlook.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

Currently, Globe Life has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Globe Life has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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 investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is First American Financial due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for First American Financial Corporation before we dive into how investors and analysts have reacted as of late.

FAF Q2 Earnings Top Estimates on Title Strength, Investment Income

First American Financial Corporation reported second-quarter 2026 operating earnings of $2.08 per share, which beat the Zacks Consensus Estimate by 15.6% and rose 35.9% year over year. Operating revenues climbed 15% to $2.1 billion, driven by growth in direct premiums, escrow fees, and Information and other revenues. The top line surpassed the consensus estimate by 4.4%.

The quarterly results benefited from robust commercial title business, higher average revenue per order, solid investment income growth and continued strength in information and subservicing businesses. Elevated operating expenses partly offset these gains.

What’s Behind the Headlines for FAF?

Direct premiums and escrow fees reached $794.1 million, marking a 14.8% increase from the prior-year level. The figure exceeded the Zacks Consensus Estimate and our model estimate by 2.3%. Investment income totaled $183.7 million in the second quarter, up 14.7% year over year, supported by higher interest income from the investment portfolio. The title segment increased 12% in investment income, partially offset by losses at the corporate level. The figure was above our estimate and the Zacks Consensus Estimate of $182.3 million.

Expenses increased 11.4% to $1.83 billion, primarily due to higher personnel costs, production expenses, premiums retained by agents and a rise in interest expense. The figure was above our estimate of $1.80 billion.

FAF’s Segmental Results

Title Insurance and Services: Total revenues rose 16.9% year over year to $2 billion, which beat the Zacks Consensus Estimate by 6.2%. This was driven by 15% growth in direct premiums and escrow fees, agent premiums and steady net investment income. Investment income increased 11% to $164 million, supported by higher interest income from the company's investment portfolio.
Adjusted pretax margin expanded 310 bps to 15.7%. Title open orders increased 0.7% to 188,200, while closed orders declined 0.7% to 137,300. Average revenue per direct title order increased to $4,572, reflecting a 31% increase in commercial average revenue per order, partially offset by a mix shift toward lower-premium refinance transactions.

Home Warranty: Total revenues rose 3.3% to $113.8 million, exceeding our model estimate of $111 million. Pretax income climbed 8.5% year over year to $24.2 million. The claim loss rate improved to 40%, due to lower claim frequency, partly offset by higher claim severity. Pretax margin expanded 110 basis points to 21.3%.

Corporate: The Corporate segment reported a net pretax loss of $56.2 million, narrowing from a $43.8 million loss in the year-ago quarter.        

FAF’s Financial Update

First American exited the second quarter of 2026 with cash and cash equivalents of $2.6 billion, up 89.6% from the 2025-end level. Notes and contracts payable were $1.5 billion, remaining flat from the 2025-end level. Stockholders’ equity was $5.6 billion at the end of the second quarter of 2026, up 2.2% from the 2025-end level. The debt-to-capital ratio was 31.4.

Capital Deployment

The board of directors paid a dividend of 55 per cent per share in the second quarter. FAF repurchased 0.3 million shares for $20 million in the reported quarter at an average price of $61.99 per share.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 6.84% due to these changes.

VGM Scores

Currently, First American Financial has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise First American Financial has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

First American Financial belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Progressive (PGR), has gained 6.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Progressive reported revenues of $23.01 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $4.85 for the same period compares with $4.88 a year ago.

Progressive is expected to post earnings of $3.77 per share for the current quarter, representing a year-over-year change of -6.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.7%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Progressive. Also, the stock has a VGM Score of B.

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

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

BankUnited Q2 Earnings Lag Estimates as Expenses Rise Y/Y

BankUnited’s second-quarter earnings of 97 cents per share lagged the Zacks Consensus Estimate of $1.02 per share. However, the bottom line was up 6.6% from the prior-year quarter.

Results were primarily hurt by a rise in non-interest expenses. Also, sequential declines in loans and deposits were a negative. However, higher net interest income and fee income along with lower provisions provided some support.

Net income totaled $70.7 million, up 2.8% from the year-ago quarter. Our estimate for the metric was $73.1 million.

Revenues Improve, Expenses Rise

Quarterly net revenues were $284.6 million, up 3.9% year over year. However, the top line missed the Zacks Consensus Estimate of $290.6 million.

NII was $255.3 million, which rose 3.7% year over year. The net interest margin expanded 13 basis points (bps) to 3.06%. Our estimates for NII and NIM were $264.5 million and 3.08%, respectively.

Non-interest income of $29.2 million increased 5.1% from the prior-year quarter. The rise was mainly driven by higher deposit service charges and fees, net gain on investment securities and capital markets income. We had projected non-interest income of $28.6 million.

Non-interest expenses increased 6.3% to $174.6 million. The rise was due to higher employee compensation and benefits costs, occupancy and equipment costs, and other non-interest expenses, partially offset by lower depreciation of operating lease equipment costs, deposit insurance expenses and technology costs. Our estimate for non-interest expenses was $176.6 million.

Loans & Deposits Decline Sequentially

As of June 30, 2026, net loans were $23.7 billion, down marginally from the prior quarter. Total deposits amounted to $28.9 billion, down from $29.4 billion in the previous quarter. Our estimates for total loans and total deposits were $24.4 billion and $29.3 billion, respectively.

Credit Quality Improves

In the reported quarter, BankUnited recorded a provision for credit losses of $15.6 million, down marginally from the prior-year quarter. We had expected the metric to be $15.9 million.

As of June 30, 2026, the ratio of net charge-offs to average loans was 0.11%, down from 0.21% in the year-ago period. Also, the non-performing assets ratio was 0.66%, down from 1.08%.

Capital & Profitability Ratios: Mixed Bag

As of June 30, 2026, the Common Equity Tier 1 risk-based capital ratio was 12.3%, up from 12.2% as of June 30, 2025. The total risk-based capital ratio was 13.9%, down from 14.3%.

In the reported quarter, the return on average assets was 0.81%, up from 0.78% in the year-earlier quarter. Return on average stockholders’ equity was 9.3%, down from 9.4%.

Share Repurchase Update

During the quarter, BankUnited repurchased approximately 1.1 million shares for $50.1 million.

2026 Outlook

Management projects total average deposits (excluding brokered) to grow 6%, with non-interest-bearing demand deposits to rise 13% (changed from previous expectation of 12% growth).

Management expects the total loan balance to rise 1-2% (changed from previous growth expectation of 2%). Core loans are projected to increase 4-5% (changed from 6% projected earlier). This will be offset by 8% run-off of the residential and other loan portfolio.

Management anticipates NII growth to 5-6% (changed from previous 9% growth forecast). NIM is expected to grow throughout the year and touch roughly 3.15% in the fourth quarter. Full-year NIM is expected to be 3.08%.

Non-interest income is projected to increase 7% (changed from 6% growth projected earlier).

Total revenues are anticipated to rise 5-6% year over year (changed from previous expectation of 8%).

Non-interest expenses are expected to increase 5% (changed from previous expectation of 4% rise).

Provisions are expected to be in the range of $68 and $72 million.

The company expects the CET 1 ratio to be 11.8% (changed from previous expectation of 11.6%).

The effective tax is anticipated to be 26%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, BankUnited has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

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

Outlook

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

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 investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is CME due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for CME Group Inc. before we dive into how investors and analysts have reacted as of late.

CME Q2 Earnings Beat Estimates on Record Market Data Growth

CME Group's second-quarter 2026 adjusted earnings of $2.99 per share beat the Zacks Consensus Estimate of $2.91 by 2.7%. The bottom line increased 1% from the year-ago quarter. Revenues of $1.70 billion surpassed the consensus estimate of $1.68 billion by 1.2% and rose 1% year over year.

The quarter benefited from record market data revenues and resilient trading activity, with average daily volume reaching 29.8 million contracts, the third-highest quarterly level in the company's history.

CME’s Revenue Growth Supported by Market Data

Revenue growth was driven by record market data and information services revenues, which rose 20% year over year to $238.1 million. Clearing and transaction fee revenues totaled $1.35 billion, while total revenues increased to $1.71 billion from $1.69 billion in the prior-year quarter.

The company also generated $115.6 million in other revenues, which grew 9.2% year over year. Total average rate per contract improved to 67.8 cents from 65.2 cents in the first quarter of 2026, reflecting lower volume tiering and a lower member mix.

CME Group Trading Activity Remains Robust

Trading activity remained strong despite lapping a record second quarter of 2025. Average daily volume totaled 29.8 million contracts, representing the company's third-highest quarterly ADV.

Financial products averaged 24.2 million contracts daily, while commodities averaged 5.7 million. Equity Index ADV increased 13% year over year to 8.6 million contracts, Agricultural products ADV rose 6% to a record quarterly level of 2.1 million, and Metals ADV advanced 5% to 865,000 contracts. Non-U.S. ADV reached 9.1 million contracts, marking the third-highest international quarterly volume in the company's history.

CME Expenses Rise as Profitability Stays Solid

Total expenses increased to $599.1 million from $562.7 million in the year-ago quarter. Operating income was $1.11 billion compared with $1.13 billion a year earlier.

On an adjusted basis, operating expenses were $521.2 million and adjusted operating income totaled $1.19 billion. Adjusted operating margin remained strong at 69.5%, while adjusted net income increased 1% year over year to $1.08 billion.

CME’s Innovation Expands Product Portfolio

CME continued to broaden its product lineup during the quarter. The company commenced 24/7 trading for its cryptocurrency futures suite and announced that 1-Ounce Gold futures would also begin trading around the clock.

Management also unveiled plans to launch Single Stock futures during the third quarter of 2026, introduce Compute futures later this year, roll out Treasury Link in the fourth quarter and expand CME Securities Clearing. These initiatives are intended to broaden the customer base and strengthen risk-management capabilities across asset classes.

CME’s Balance Sheet and 2026 Outlook

CME ended the quarter with approximately $2.3 billion in cash and $3.4 billion of debt. During the quarter, the company paid regular dividends of approximately $468 million and repurchased $695 million of common shares.

Management expects full-year adjusted operating expenses, excluding license fees, of approximately $1.695 billion and capital expenditures, net of leasehold improvement allowances, of roughly $85 million. The adjusted effective tax rate is projected to be at the low end of the previously communicated 23.5-24.5% range. July trading activity has remained strong, with average daily volume trending toward the highest July in company history.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

At this time, CME has a poor Growth Score of F, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

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

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

BMI Q2 Earnings Beat on Project Ramps

Badger Meter reported second-quarter 2026 earnings of $1.02 per share, down 12.8% year over year but 1.0% above the $1.01 consensus. Revenues of $222.32 million fell 6.6% but beat the $221.06 million estimate by 0.6%.

Sequential sales increased 10% as awarded utility projects began initial deployments and order rates improved from the first quarter. Utility water sales declined 8%, while flow instrumentation revenues rose 6% on strength in water-related markets.

BMI's Utility Sales Begin To Recover

Utility water sales were down 9% excluding two months of UDlive, reflecting uneven advanced metering infrastructure project pacing. However, organic utility sales improved 8% sequentially. Higher software and other BlueEdge beyond-the-meter sales partly offset lower AMI-related product revenues.

Shipments started for the PRASA project, while several other awarded projects entered early deployment. Management said the nine-project cohort remains broadly solid, although implementation can vary by project and remain uneven because of customer schedules and installation timing.

Badger Meter's Flow Business Adds Support

Flow instrumentation sales increased 6% year over year, supported by broad demand in water-related applications. The quarter also benefited from data-center orders for clamp-on meters and MAG meters used in cooling and flow-monitoring systems.

Management cautioned that the product line should still be viewed as a GDP-like, low-single-digit grower over the five-year strategic horizon. At the ACE26 trade show, customer interest also centered on ORION cellular technology, EyeOnWater Premium, the BEACON Field app and the Cobalt embedded artificial intelligence offering.

BMI Protects Margins Through Cost Discipline

Gross margin contracted 30 basis points to 40.8% as lower volumes and project mix weighed on profitability. The result remained within Badger Meter's normalized 39%-42% range. Operating earnings declined 12.2% to $39.38 million, while operating margin fell 110 basis points to 17.7%.

Base operating earnings, which exclude UDlive, decreased 9.5% to $40.62 million, with margin down 40 basis points to 18.4%. Selling, engineering and administration expenses declined 2.9% to $51.40 million as spending controls and lower incentive compensation offset acquisition-related costs. Electronic component costs and availability remain a watch item.

Badger Meter Works Down Working Capital

Free cash flow fell to $21.90 million from $40.60 million a year earlier. Cash from operations was $26.71 million, while capital expenditures totaled $4.84 million. Primary working capital rose to 22.9% of sales from 20.0% at the end of the first quarter.

During the quarter, BMI spent $94.38 million on acquisitions, $25.25 million on share repurchases and $11.59 million on dividends. It ended June with $95.73 million in cash and an undrawn $150 million credit facility. About $90 million remains under the repurchase authorization.

BMI Adds UDlive To Broaden Water Monitoring

UDlive contributed $2.03 million in sales for May and June and recorded an operating loss of $1.25 million. Its amortization expense was $0.80 million, and management expects ongoing annual intangible amortization of about $5.00 million.

The acquisition expands Badger Meter's sewer-line monitoring leadership and global capabilities. Management attributed the modest initial revenue contribution to timing and said integration progress and early commercial interest were strong. UDlive also complements SmartCover within the company's broader beyond-the-meter portfolio.

Badger Meter Reaffirms the 2026 Outlook

Management continues to expect base quarterly revenues to improve sequentially through the remainder of 2026. Third-quarter sales are expected to rise from the second quarter, while full-year revenues excluding UDlive are projected to be flattish with 2025. Year-over-year growth is expected to be weighted toward the fourth quarter.

Some awarded projects may reach full run rates by year-end, while others will not be at full run rate by then. The company also reaffirmed its five-year framework for high-single-digit sales growth, 10%-15% EPS growth and free cash flow conversion above 100% of net income.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Badger Meter has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

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

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