Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, non-interest and interest-bearing checking accounts, and investment accounts and products; credit and debit cards; residential mortgages, and home equity loans; and direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, short-term investing options, and merchant services; working capital management solutions; debt and equity underwriting and distribution, and merger-related and other advisory services; and fixed-income and equity research, and certain market-based services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.

Bank of America looks like a large and profitable bank with a stable asset base, but the valuation no longer appears cheap relative to the quality of the business. P/E of 14.76, P/S of 2.36, and P/B of 1.41 are above the industry median, which usually implies higher market expectations and limits the potential for further re-rating. At the same time, P/FCF is noticeably below the median, supporting the case for acceptable cash generation and partially offsetting the expensiveness on earnings and equity. Return on capital, with ROE at 10.02% and ROE/TCE at 12.99%, looks decent, but ROA of 0.88% and ROI of 4.89% are below industry benchmarks, so the efficiency of asset and invested capital use remains average to weak. Profit margins, both operating and gross, are below the industry median, although they have improved over time, which points to a gradual recovery in operating quality. Revenue, gross profit, and net income overall remain at high levels and do not show signs of deterioration, while net income and operating income appear stable. Equity and assets are also growing or remaining stable, which is important for a bank with a large balance sheet. However, the debt burden measured by debt/equity is above the median, and long-term debt continues to rise, which adds caution to the assessment. Liquidity looks weak: the quick ratio is zero and the current ratio is below 1, which is not critical for a banking model but still highlights dependence on balance sheet structure. Dividend yield is absent in the latest data, so this factor does not provide additional support to the valuation. Overall, the fundamentals are more solid than exceptional: the business is large and profitable, but part of the positive expectations is already reflected in the price. For a one-year horizon, this justifies only a moderately cautious downward adjustment to the forecast, rather than a deep revision.

Bank of America Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Рынок на стороне быков.

Weak index, significantly down. The market is on the bulls' side.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

BAC remains a profitable and large-scale bank, but its valuation is no longer cheap, profitability is below the industry average, and debt burden and weak liquidity limit the upside.

Key Points
The rapid jump in memory prices will continue in 2027 as demand outpaces supply.
Micron has benefited big time from a surge in memory prices over the past year, and it can replicate its impressive growth in 2027 as well.
Micron still has multibagger potential due to its attractive valuation and the phenomenal earnings jump it can deliver over the coming year.
The exponential growth in earnings registered by Micron Technology (NASDAQ: MU) over the past year has translated into solid gains on the stock market, with shares of the memory giant up by a whopping 637% during this period.
The incredible demand for memory and the accompanying shortage of dynamic random-access memory (DRAM) and NAND flash storage have fueled the company's remarkable surge. Micron stock has benefited from a parabolic jump in memory prices. You may now be wondering if this high-flying chipmaker can continue skyrocketing.
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The good news is that it can indeed sustain its red-hot rally well into 2027. To see why that's likely to be the case, we will need to take a closer look at the primary catalyst that has sent this semiconductor stock soaring over the past year.
Rising memory prices have fueled Micron's rally, and the trend is here to stay
Artificial intelligence (AI) data centers need faster compute memory and ample storage to run training, inference, and agentic AI workloads efficiently. As a result, the demand for DRAM and NAND flash memory has taken off. High-bandwidth memory (HBM), in particular, has created a huge supply shortage as it requires three times the wafer capacity needed to manufacture conventional DRAM, according to Bank of America.
HBM is critical in AI accelerators, enabling the rapid transport of large data sets with low power consumption. Chip designers have been packing in more HBM into custom processors, graphics cards, and even server processors to ensure these chips don't sit idle. Not surprisingly, the HBM market is anticipated to grow by a whopping 7x by 2030, generating $246 billion in revenue by the end of the decade.
However, the booming demand for HBM has created a ripple effect across the memory industry. The wafer-intensive nature of these chips has created a shortage of traditional DRAM and NAND flash, as memory makers have been prioritizing HBM production to increase profits. This is why NAND flash prices nearly doubled over the final six months of 2026, according to Taiwan-based Phison, which manufactures NAND flash controllers.
Meanwhile, DRAM prices reportedly surged 170% last year, according to a third-party estimate. This historical trend of higher memory prices has been the primary catalyst behind Micron's astronomical jump, and there is ample evidence that prices will strengthen further, leading to more upside in this semiconductor stock.
SK Hynix, for instance, expects the memory crunch to worsen next year, even after capacity additions. As demand continues to outpace supply, prices should ideally continue rising. Market research provider Gartner projects a 125% spike in DRAM prices this year, while NAND flash could see a stronger jump of 234%.
If the supply crunch indeed worsens, Micron investors can expect further growth in earnings and margins on account of stronger pricing following a strong jump over the past year.
A solid spike in earnings suggests more upside in 2027
Micron's earnings are expected to increase by nearly 9x in the current fiscal year to $73.44 per share, according to consensus estimates. The company's fiscal 2026 will end next month. For fiscal 2027, which ends in August next year, analysts expect its earnings to more than double.
While that represents a slower increase from fiscal 2026 levels, the projected earnings growth for next year is still quite impressive. Of course, Micron can clock stronger earnings growth for the reasons discussed above, but even the projected bottom-line jump points to significant upside.
Micron trades at 22 times trailing earnings right now. That's higher than the stock's three-year median price-to-earnings ratio of 14.5, as per YCharts. Assuming Micron trades at 14.5 times earnings after a year and clocks $153.74 in earnings per share, its stock price could jump to $2,229. That's a potential upside of 2.8x in just over a year.
So, this AI stock seems primed for another multibagger performance over the coming year, suggesting that savvy investors should consider buying it following its recent dip.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
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Bank of America is an advertising partner of Motley Fool Money. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Micron Stock Has Surged 637% in a Year. History Has a Clear Answer Where It Will Be in 2027

On 7/31/26, Bank of America Corp's 6.000% Non-Cumulative Preferred Stock, Series GG (Symbol: BAC.PRB) will trade ex-dividend, for its quarterly dividend of $0.375, payable on 8/17/26. As a percentage of BAC.PRB's recent share price of $24.87, this dividend works out to approximately 1.51%, so look for shares of BAC.PRB to trade 1.51% lower — all else being equal — when BAC.PRB shares open for trading on 7/31/26. On an annualized basis, the current yield is approximately 6.02%, which compares to an average yield of 6.76% in the "Financial" preferred stock category, according to Preferred Stock Channel. The chart below shows the one year performance of BAC.PRB shares, versus BAC:
Below is a dividend history chart for BAC.PRB, showing historical dividends prior to the most recent $0.375 on Bank of America Corp's 6.000% Non-Cumulative Preferred Stock, Series GG :
In Wednesday trading, Bank of America Corp's 6.000% Non-Cumulative Preferred Stock, Series GG (Symbol: BAC.PRB) is currently off about 0.2% on the day, while the common shares (Symbol: BAC) are down about 1.3%.
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen »
Further BAC.PRB Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Bank of America's Preferred Stock, Series GG About To Put More Money In Your Pocket

Key Points
The AI industry has been wavering lately, as fears around a bubble grow.
A bear market is coming eventually, and now is the ideal time to prepare.
History offers a clear answer as to how investors can protect their portfolios.
The AI sector has experienced unprecedented growth in recent years, lifting the rest of the stock market with it. The catch, though, is that these stocks can also drag the market down if they falter.
The top 10 largest AI-related stocks now make up over 40% of the S&P 500 (SNPINDEX: ^GSPC), according to research from Bank of America, which is similar to the levels of tech stock concentration during the dot-com bubble of the early 2000s.
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While AI bubble fears have been circulating for years, recent volatility within the tech sector has led to renewed concerns. More experts are beginning to sound the alarm, and history offers a clear answer as to what investors should do right now.
AI spending is causing concern among investors
Many companies have ramped up their AI-related expenditures in recent years. Amazon, Microsoft, Meta Platforms, and Google parent company Alphabet spent a combined $410 billion on data centers in 2025. Globally, organizations are expected to spend around $4 trillion on AI infrastructure by 2030.
While many investors are hopeful that the AI build-out will pay off eventually, experts are beginning to warn that we're in potential bubble territory.
According to Bank of America's most recent Global Fund Managers Survey, 61% of managers don't expect hyperscalers to cut back on spending this year. While none reported being short on the technology sector, they still identified an AI bubble as the most pressing tail risk facing the market right now.
Is history repeating itself?
The incredible rise of AI stocks has given some investors flashbacks to the dot-com bubble, when hundreds of internet companies soared in value over a few short years -- only to crash hard when the bubble popped.
While it's impossible to say whether the AI boom will go down a similar path, there are some similarities. The S&P 500 Shiller CAPE Ratio measures long-term trends in the S&P 500's valuation, and it's nearing levels not seen since the dot-com bubble.
There are only two points in history when this ratio consistently stayed above 40. The first was in 1999, leading up to the dot-com bear market. The second is right now, as this metric has hovered just above 40 since May.
To be clear, no stock market indicator is 100% correct, as past performance can't predict future returns. What investors can take away from this signal, however, is that it's more important than ever to invest in quality stocks.
The best move investors can make right now
History may not be able to predict future bear markets, but it does prove time and time again that overhyped and overvalued stocks will struggle the most over the long term.
During the dot-com bubble, for instance, the companies that failed were those with unsustainable business models, poor financial health, or weak competitive advantages. Despite many of those stocks skyrocketing in price, shaky fundamentals can cripple even the hottest investments.
It's equally important, however, to keep a long-term outlook. Even healthy stocks are often pummeled during bear markets, but the companies built on solid foundations will eventually recover. Amazon, for instance, lost around 95% of its value between 1999 and 2001. The investors who reaped the biggest rewards were those who stayed the course and continued investing.
Regardless of whether we're in an AI bubble, we'll face a market downturn eventually. Right now is the ideal time to review your portfolio and ensure you're investing only in quality stocks.
Again, no stock will be immune to short-term market volatility. The best investments, however, are those that can withstand turbulence and go on to earn positive long-term returns. The more of these stocks you own, the more prepared you'll be for any bear market.
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Bank of America is an advertising partner of Motley Fool Money. Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Experts Are Sounding the Alarm Over an AI Bubble. Here's What History Says Investors Should Do Right Now.

Key Points
At the end of the first quarter, Amazon valued its stake in Anthropic at $74.2 billion.
Now that the AI start-up plans to go public, that stake could be worth more than $200 billion.
It's Amazon's (NASDAQ: AMZN) turn to step up to the earnings podium. The online retailer founded by Jeff Bezos is expected to show strong growth in its cloud computing business, Amazon Web Services, and is likely to increase its planned $200 billion capital expenditure budget as memory and storage products become more expensive.
I'm fully expecting Amazon to post solid second-quarter earnings on Thursday, July 30. But considering that investors seem to have the yips right now about spiraling data center costs, I expect the stock to drop due to capital expenditure growth and shrinking free cash flow. Yet there's one item that certainly will cause investors to smile: the company's massive gains from its stake in the start-up AI company Anthropic.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Amazon was an early investor in Anthropic, the company behind Claude, and put $13 billion in with the option to invest $20 billion more. That $13 billion stake is now worth much more, given that Anthropic is considering going public at a valuation of around $1 trillion. In a research note, Bank of America analysts point to Amazon's stake in Anthropic as a significant driver in its upcoming earnings report, generating a strong mark-to-market gain.
Let's see how Amazon's stake in Anthropic has grown, and what investors should be looking for in Amazon's Q2 update.
Amazon is winning big with Anthropic
Amazon's investment in Anthropic includes an initial $8 billion investment in 2024, followed by another $5 billion in 2026. Published reports indicate that Amazon has 21% stake in the AI company.
However, at the end of the first quarter, Amazon valued its Anthropic stake at $74.2 billion -- $42.2 billion in convertible notes and $32 billion in nonvoting preferred stock. That would imply Anthropic had a value at that time of about $353.3 billion.
Last month, Anthropic filed a confidential IPO with the Securities and Exchange Commission that places Anthropic's value at $965 billion. That would push the value of Amazon's 21% stake to $202.6 billion.
Putting Amazon's gains into perspective
In the first quarter, Amazon reported net income of $30.25 billion -- a solid number, with much of that coming from its fast-growing Amazon Web Services. But it could be looking at a much larger gain -- on paper -- in this quarter just from its Anthropic stake, which appears set to increase by $128.4 billion in a single quarter.
That would certainly take the sting out of any dip in Amazon's stock price post-earnings. Big tech stocks have been hammered so far this week on fears of overspending on data centers and AI infrastructure, with Alphabet stock dropping 6% post-earnings after it raised its capex spending from $185 billion to $200 billion. Tesla fell even further after reporting a negative free cash flow of $1.1 billion for the quarter.
Amazon may suffer the same fate when it reports earnings. But investors who focus only on capex will miss the bigger picture. Anthropic's rapid growth is creating tremendous value for Amazon, and in the July 30 earnings report, investors may learn that its stake in the AI start-up is one of its most valuable assets.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
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Bank of America is an advertising partner of Motley Fool Money. Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Jeff Bezos' Amazon Could See a Sizable Mark-to-Market Gain From Its Anthropic Stake When It Reports Earnings July 30, BofA Says

For Immediate Release
Chicago, IL – July 28, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Bank of America Corp. BAC, Netflix, Inc. NFLX, TotalEnergies SE TTE, Park Aerospace Corp. PKE and Friedman Industries, Inc. FRD.
Here are highlights from Monday’s Analyst Blog:
Top Stock Reports for Bank of America, Nertflix and TotalEnergies
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Bank of America Corp., Netflix, Inc. and TotalEnergies SE, as well as two micro-cap stocks Park Aerospace Corp. and Friedman Industries, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
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The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Fill Holes Left from Friday's Selloff
Today's Featured Research Reports
Bank of America’s shares have outperformed the Zacks Financial - Investment Bank industry over the past six months (+22% vs. +13.4%). The company’s second-quarter 2026 results were aided by trading and investment banking (IB) strength along with net interest income (NII) growth. NII growth is expected to continue supported by steady loan growth and a higher-for-longer rate environment.
Bank of America’s expansion strategy by opening financial branches will boost the top line. Along with this, investments in digital capabilities will enhance client engagement and cross-selling opportunities, likely driving fee income.
However, elevated expenses due to investments in technology and franchise expansion will hurt the bottom line to an extent. The volatile nature of the capital markets business makes growth in trading revenues uncertain. Weak asset quality is another concern, which might hamper financials.
(You can read the full research report on Bank of America here >>>)
Shares of Netflix have underperformed the Zacks Broadcast Radio and Television industry over the past six months (-17.2% vs. -15.5%). The company reported second quarter 2026 earnings per share of 80 cents, up 11.1% year over year and beat the Zacks Consensus Estimate by 1.27%. Revenues rose 13.4% year over year to $12.56 billion, driven by membership growth, pricing and higher advertising revenues, though the figure missed the consensus mark by 0.1%.
Operating margin was 33.4%, down from 34.1% a year earlier, reflecting higher content amortization tied to a front loaded content slate. Free cash flow fell to $1.53 billion from $2.27 billion on higher cash taxes linked to the terminated Warner Bros. Discovery deal.
Netflix ended the quarter with $9.1 billion in cash and $14.4 billion in gross debt. It narrowed its 2026 revenue outlook to $51.0 billion to $51.4 billion, implying 13% to 14% growth, while maintaining its 31.5% operating margin steady.
(You can read the full research report on Netflix here >>>)
TotalEnergies’ shares have gained +18.8% over the past six months against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +45.7%. The company’s second-quarter earnings and sales were lower than expected due to low production volumes. The company offers a balanced investment case.
TotalEnergies’ global portfolio, resilient output outside disrupted regions, and exposure to LNG and newer hydrocarbon basins support cash generation across cycles. Start-ups and acquired assets should add volumes, while low-carbon investments provide a longer-term transition path and help align the business with emissions goals.
However, a neutral stance remains appropriate because the company is exposed to geopolitical and security risks in regions where operations can be interrupted. Reliance on acquired assets adds integration and execution risk, and commodity swings can pressure margins and cash flow. In the past six months, shares of TotalEnergies underperformed its industry.
(You can read the full research report on TotalEnergies here >>>)
Shares of Park Aerospace have outperformed the Zacks Aerospace - Defense Equipment industry over the past six months (+51.8% vs. -7.8%). This microcap company with a market capitalization of $744.76 million benefits from multi-year commercial aerospace demand through its GE Aerospace-related programs, including a long-term agreement with MRAS covering composite materials for Airbus A320neo family and other aircraft platforms through 2029. Airbus’ planned production ramp to 70-75 A320neo family aircraft monthly by the end of 2027 could provide sustained supplier demand.
Park’s FY2027 Q1 sales rose to $18.3 million, gross margin expanded to 34.8%, and adjusted EBITDA margin improved to 25%. Its largely unlevered balance sheet, supported by $80.5 million in cash and $8.9 million in marketable securities, provides flexibility for growth investments and shareholder returns.
However, risks include customer concentration, delayed returns from capacity investments, uneven defense program realization, and supply-chain disruptions. The stock trades at 8.22X trailing EV/sales.
(You can read the full research report on Park Aerospace here >>>)
Friedman Industries’ shares have outperformed the Zacks Metal Products - Procurement and Fabrication industry over the past six months (+91.6% vs. -6.8%). This microcap company with a market capitalization of $253.03 million benefits from an expanded operating platform following the Century Metals & Supplies acquisition, which broadened its product portfolio, processing capabilities and geographic reach.
Friedman Industries’ flat-roll business remains the primary growth driver, supported by higher throughput, utilization and record fiscal 2026 sales volume. The Sinton facility and value-added processing capabilities provide operating leverage, while tubular segment recovery adds diversification. Strong liquidity supports investment and flexibility.
However, profitability remains sensitive to steel prices, inventory levels, demand cycles and cost absorption. Higher borrowings, hedge timing impacts and supplier concentration remain key considerations. The valuation suggests modest investor expectations, leaving room for upside if growth initiatives and profitability improvements continue.
(You can read the full research report on Friedman Industries here >>>)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights BAC, NFLX, TTE, PKE and FRD

The NASDAQ 100 After Hours Indicator is up 13.06 to 28,052.27. The total After hours volume is currently 173,665,885 shares traded.
The following are the most active stocks for the after hours session:
Grab Holdings Limited (GRAB) is unchanged at $3.35, with 17,343,903 shares traded.GRAB is scheduled to provide an earnings report on 8/3/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 0.01 per share, which represents a 1 percent increase over the EPS one Year Ago
Netflix, Inc. (NFLX) is +0.1761 at $70.58, with 7,888,293 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $0.82. As reported by Zacks, the current mean recommendation for NFLX is in the "buy range".
VanEck Semiconductor ETF (SMH) is -1.42 at $547.13, with 7,177,486 shares traded. This represents a 95.97% increase from its 52 Week Low.
NVIDIA Corporation (NVDA) is +0.12 at $196.63, with 6,991,933 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2026. The consensus EPS forecast is $2.01. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Intel Corporation (INTC) is -0.49 at $91.18, with 5,793,662 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $0.16. INTC's current last sale is 86.84% of the target price of $105.
Energy Transfer L.P. (ET) is +0.04 at $19.95, with 4,147,658 shares traded. As reported by Zacks, the current mean recommendation for ET is in the "buy range".
Apple Inc. (AAPL) is -0.01 at $336.90, with 4,133,420 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2026. The consensus EPS forecast is $2.95. AAPL is scheduled to provide an earnings report on 7/30/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 1.88 per share, which represents a 157 percent increase over the EPS one Year Ago
Coca-Cola Company (The) (KO) is -0.0006 at $84.07, with 3,353,574 shares traded.KO is scheduled to provide an earnings report on 7/28/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 0.92 per share, which represents a 87 percent increase over the EPS one Year Ago
Bank of America Corporation (BAC) is +0.0599 at $62.19, with 2,943,285 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $1.17. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Salesforce, Inc. (CRM) is -0.01 at $173.59, with 2,368,032 shares traded. As reported by Zacks, the current mean recommendation for CRM is in the "buy range".
Rocket Companies, Inc. (RKT) is unchanged at $13.49, with 2,254,229 shares traded. RKT's current last sale is 69.18% of the target price of $19.5.
HDFC Bank Limited (HDB) is unchanged at $23.22, with 2,248,283 shares traded. As reported by Zacks, the current mean recommendation for HDB is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After Hours Most Active for Jul 27, 2026 : GRAB, NFLX, SMH, NVDA, INTC, ET, AAPL, KO, BAC, CRM, RKT, HDB

Monday, July 27, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Bank of America Corp. (BAC), Netflix, Inc. (NFLX) and TotalEnergies SE (TTE), as well as two micro-cap stocks Park Aerospace Corp. (PKE) and Friedman Industries, Inc. (FRD). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
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The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Fill Holes Left from Friday's Selloff
Today's Featured Research Reports
Bank of America’s shares have outperformed the Zacks Financial - Investment Bank industry over the past six months (+22% vs. +13.4%). The company’s second-quarter 2026 results were aided by trading and investment banking (IB) strength along with net interest income (NII) growth. NII growth is expected to continue supported by steady loan growth and a higher-for-longer rate environment.
Bank of America’s expansion strategy by opening financial branches will boost the top line. Along with this, investments in digital capabilities will enhance client engagement and cross-selling opportunities, likely driving fee income.
However, elevated expenses due to investments in technology and franchise expansion will hurt the bottom line to an extent. The volatile nature of the capital markets business makes growth in trading revenues uncertain. Weak asset quality is another concern, which might hamper financials.
(You can read the full research report on Bank of America here >>>)
Shares of Netflix have underperformed the Zacks Broadcast Radio and Television industry over the past six months (-17.2% vs. -15.5%). The company reported second quarter 2026 earnings per share of 80 cents, up 11.1% year over year and beat the Zacks Consensus Estimate by 1.27%. Revenues rose 13.4% year over year to $12.56 billion, driven by membership growth, pricing and higher advertising revenues, though the figure missed the consensus mark by 0.1%.
Operating margin was 33.4%, down from 34.1% a year earlier, reflecting higher content amortization tied to a front loaded content slate. Free cash flow fell to $1.53 billion from $2.27 billion on higher cash taxes linked to the terminated Warner Bros. Discovery deal.
Netflix ended the quarter with $9.1 billion in cash and $14.4 billion in gross debt. It narrowed its 2026 revenue outlook to $51.0 billion to $51.4 billion, implying 13% to 14% growth, while maintaining its 31.5% operating margin steady.
(You can read the full research report on Netflix here >>>)
TotalEnergies’ shares have gained +18.8% over the past six months against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +45.7%. The company’s second-quarter earnings and sales were lower than expected due to low production volumes. The company offers a balanced investment case.
TotalEnergies’ global portfolio, resilient output outside disrupted regions, and exposure to LNG and newer hydrocarbon basins support cash generation across cycles. Start-ups and acquired assets should add volumes, while low-carbon investments provide a longer-term transition path and help align the business with emissions goals.
However, a neutral stance remains appropriate because the company is exposed to geopolitical and security risks in regions where operations can be interrupted. Reliance on acquired assets adds integration and execution risk, and commodity swings can pressure margins and cash flow. In the past six months, shares of TotalEnergies underperformed its industry.
(You can read the full research report on TotalEnergies here >>>)
Shares of Park Aerospace have outperformed the Zacks Aerospace - Defense Equipment industry over the past six months (+51.8% vs. -7.8%). This microcap company with a market capitalization of $744.76 million benefits from multi-year commercial aerospace demand through its GE Aerospace-related programs, including a long-term agreement with MRAS covering composite materials for Airbus A320neo family and other aircraft platforms through 2029. Airbus’ planned production ramp to 70-75 A320neo family aircraft monthly by the end of 2027 could provide sustained supplier demand.
Park’s FY2027 Q1 sales rose to $18.3 million, gross margin expanded to 34.8%, and adjusted EBITDA margin improved to 25%. Its largely unlevered balance sheet, supported by $80.5 million in cash and $8.9 million in marketable securities, provides flexibility for growth investments and shareholder returns.
However, risks include customer concentration, delayed returns from capacity investments, uneven defense program realization, and supply-chain disruptions. The stock trades at 8.22X trailing EV/sales.
(You can read the full research report on Park Aerospace here >>>)
Friedman Industries’ shares have outperformed the Zacks Metal Products - Procurement and Fabrication industry over the past six months (+91.6% vs. -6.8%). This microcap company with a market capitalization of $253.03 million benefits from an expanded operating platform following the Century Metals & Supplies acquisition, which broadened its product portfolio, processing capabilities and geographic reach.
Friedman Industries’ flat-roll business remains the primary growth driver, supported by higher throughput, utilization and record fiscal 2026 sales volume. The Sinton facility and value-added processing capabilities provide operating leverage, while tubular segment recovery adds diversification. Strong liquidity supports investment and flexibility.
However, profitability remains sensitive to steel prices, inventory levels, demand cycles and cost absorption. Higher borrowings, hedge timing impacts and supplier concentration remain key considerations. The valuation suggests modest investor expectations, leaving room for upside if growth initiatives and profitability improvements continue.
(You can read the full research report on Friedman Industries here >>>)
Other noteworthy reports we are featuring today include Teledyne Technologies Inc. (TDY), Labcorp Holdings Inc. (LH) and Tenet Healthcare Corp. (THC).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Strategic Acquisitions Aids Labcorp (LH) Amid Foreign Exchange Woes
The Zacks analyst is impressed by Labcorp's strategic relationships with health systems and regional laboratories. Yet, challenges in terms of unfavorable foreign exchange issue hurts growth.
Tenet (THC) to Gain From Same-Facility Growth Despite Payer Mix
Per the Zacks analyst, strong same-facility revenue growth and disciplined expense management will drive Tenet Healthcare's performance. However, an unfavorable payer mix remains a concern.
UDR's Growth Buoyed by Demand Despite Supply and Competition Pressures
Per the Zacks analyst, UDR's diverse portfolio, healthy demand and tech-driven efficiencies support growth, though elevated supply in select markets and rising competition may temper rent gains ahead.
Momentum in CTV Powers Trade Desk (TTD) Amid Macro Limitations
Per the Zacks analyst, The Trade Desk continues to benefit from structural tailwinds in CTV, with video comprising a low-50% share of revenues. Digital advertising spending is prone to macro woes.
Mobileye (MBLY) To Benefit From Stellantis Cloud-Enhanced ADAS Deal
Mobileye's deal to put its Cloud-Enhanced ADAS technology into select Stellantis vehicles is expected to lift profitability, per the Zacks analyst.
Pool Corp (POOL) Banks on Maintenance Business, High Costs Ail
Per the Zacks analyst, Pool Corp is likely to benefit from recurring maintenance business, higher pricing and growing POOL360 adoption. However, soft new pool construction activity and high costs ail.
Universal Insurance Set to Grow on Prudent Underwriting
Per the Zacks analyst, Universal Insurance is set to grow on strong retention, selective market positioning, and policy growth. Yet, reinsurance cost volatility and rising Competition concern.
New Upgrades
Defense Demand and Acquisitions Support Teledyne Technologies (TDY)
Per the Zacks analyst, Teledyne Technologies is poised to benefit from rising defense demand, record backlog and disciplined strategic acquisitions.
International Seaways (INSW) Benefits From a Strong Liquidity Position
The Zacks analyst is impressed by the company's strong liquidity position. A favorable supply-demand balance and shareholder-friendly approach are added tailwinds.
Signet Jewelers (SIG) Builds Momentum Through Grow Brand Love Strategy
Per the Zacks analyst, Signet Jewelers is advancing its Grow Brand Love strategy through stronger brand positioning, digital enhancements and targeted marketing to drive sustainable growth.
New Downgrades
Massive Debt, Dependence on Xifaxan Weighing on Bausch Health (BHC)
Per the Zacks analyst, Bausch faces significant risks from its heavy debt burden, Xifaxan dependence, generic threats, and litigation. The Bausch + Lomb separation uncertainty is also a concern.
Solaris Energy (SEI) Faces Execution and Funding Risks
The Zacks analyst believes that Solaris Energy Infrastructure faces rising execution and funding risks, while customer concentration and project delays could pressure earnings and the stock.
Boston Beer (SAM) Witnesses Tariff Woes and Higher Commodity Costs
Per the Zacks analysts, Boston Beer expects tariff-related costs of $20-$30 million in 2026, up from $11 million in 2025. The company remains exposed to elevated aluminum, energy and freight costs.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Stock Reports for Bank of America, Netflix & TotalEnergies

Bank of America BAC delivered a strong second-quarter 2026 performance, underscoring the resilience of its diversified business model despite an uncertain macroeconomic environment. The bank reported 34.4% year-over-year earnings per share growth, driven by record net interest income (NII), robust trading and investment banking (IB) revenues, healthy loan growth, and resilient credit quality.
This quarter marked the 17th consecutive quarter of growth in trading revenues. Sales and trading revenues (excluding net DVA) increased 33% year over year to $7.16 billion. IB fees soared 50.5% to $1.15 billion, reflecting strong advisory and capital markets activity. Likewise, NII (fully taxable-equivalent basis) rose 9.1% to a record $16.16 billion, highlighting the strength of the bank’s core lending franchise.
The results also showcased the benefits of Bank of America’s long-term strategic investments. The company maintained a robust balance sheet, continued to reward shareholders through higher dividends and share repurchases, and reaffirmed its expectation for sustained NII growth in 2026.
Strength across its Consumer Banking, Global Banking, Global Markets, and Global Wealth & Investment Management segments further demonstrates the bank’s ability to generate balanced earnings from multiple businesses rather than relying on a single revenue source.
Given these strong operating trends, Bank of America appears well-positioned to create shareholder value. However, before making an investment decision, it is important to evaluate the company’s underlying fundamentals and growth drivers to determine whether the stock remains an attractive investment opportunity.
Key Factors Supporting Bank of America
Robust Top-Line Growth: Bank of America has been witnessing an increase in revenues over the past several years. Total net revenues witnessed a compound annual growth rate (CAGR) of 5.7% over the last five years (2020-2025), with the uptrend continuing in the first half of 2026.
Revenue Trend
Image Source: Zacks Investment Research
The rise has been driven by consistent loan growth (net loans and leases saw a CAGR of 5.2% over the same time frame) and a favorable interest rate backdrop, along with a decent rise in fee income (total non-interest income witnessed a CAGR of 4.7%).
Despite declines in interest rates in 2024 and 2025, the company’s NII saw a CAGR of 6.7% in the five years ended 2025, primarily supported by increasing loan balances. The uptrend for NII has continued in the first six months of 2026.
With interest rates expected to remain elevated and the possibility of a rate hike later in the year, along with a continued rise in loan balances and fixed-rate asset repricing, BAC’s NII is expected to continue to improve in the near term. Management expects full-year 2026 NII (FTE) to grow in the upper end of 6-8%. This, coupled with fee income growth, will likely keep supporting revenue expansion.
The Zacks Consensus Estimate for BAC’s 2026 and 2027 revenues is pegged at $123.5 billion and $129.9 billion, which indicates year-over-year growth rates of 12% and 5.1%, respectively.
Revenue Growth Estimates
Image Source: Zacks Investment Research
Strong Recovery in Investment Banking Franchise: Bank of America’s IB business has regained strong momentum following the industry-wide slowdown in global deal-making during 2022-2023.
After IB fees declined 45.7% in 2022 and 2.4% in 2023, the franchise rebounded with 31.4% growth in 2024 and an 8.4% increase in 2025. The recovery accelerated in the first half of 2026, with IB fees rising 36.4% year over year, driven by a 61% surge in advisory revenues, a 52.8% increase in equity underwriting fees and a 10.9% rise in debt underwriting income.
With corporate confidence gradually improving, capital markets reopening and Bank of America maintaining a robust investment banking pipeline, the company is well-positioned to sustain fee income growth and further diversify earnings beyond its traditional lending business.
Integration of Artificial Intelligence With Branch Expansion: Bank of America is integrating AI with its branch expansion strategy by building a “phygital” banking model that combines AI-driven digital capabilities with modern, tech-enabled financial centers. While the bank plans to open more than 150 new centers by 2027, AI tools like Erica, fraud-detection systems and automated workflows are increasingly handling routine transactions and customer interactions.
This allows branch employees to focus on higher-value advisory services and cross-selling products such as mortgages, auto loans and credit cards. The strategy is expected to improve operating efficiency, lower costs, enhance customer engagement, and drive stronger fee income and NII growth over the long term, ultimately supporting sustained operating margin expansion.
Strong Balance Sheet & Liquidity Position: As of June 30, 2026, Bank of America had total debt worth $732.1 billion. Its cash and cash-equivalents balance was $229.7 billion. Despite a high debt burden, the company’s liquidity position seems sufficient to meet near-term obligations since BAC has easy access to the debt markets, given its investment-grade long-term credit ratings of A1, A- and AA- from Moody’s, S&P Global Ratings and Fitch Ratings, respectively, along with a stable outlook.
The company has an efficient capital distribution plan, supported by its earnings strength, through which it keeps enhancing shareholder value. After clearing the 2026 stress test, Bank of America raised its quarterly dividend 14.3% to 32 cents per share. Prior to this, it increased its dividend 7.7% in 2025, 8.3% in 2024, 9.1% in 2023, 4.8% in 2022 and 17% in 2021.
Also, BAC engages in regular share repurchases. In July 2025, it authorized a $40-billion repurchase program. As of June 30, 2026, $17 billion worth of authorization remained available for repurchase.
Analyzing Bank of America’s Price Performance & Valuation
So far this year, shares of Bank of America have gained 12.8%, outperforming the S&P 500 Index’s 7.5% rally and the industry’s 10.4% growth.
If we look at BAC’s two key peers, JPMorgan JPM and Citigroup C, it appears that while BAC has outperformed JPM year to date, it has underperformed Citigroup.
Shares of JPMorgan have gained 9.6%, whereas the Citigroup stock has appreciated 13.3%.
YTD Price Performance
Image Source: Zacks Investment Research
Looking at Bank of America’s valuation, the stock is currently trading at a 12-month trailing price-to-tangible book (P/TB) of 2.19X, which is below the industry’s 3.40X. This shows that BAC is currently trading at a discount relative to the industry average.
P/TB Ratio (TTM)
Image Source: Zacks Investment Research
JPMorgan has a P/TB of 3.29X, while Citigroup’s P/TB ratio is 1.34X. Thus, currently, BAC is overvalued compared with Citigroup but undervalued compared with JPMorgan.
Final Verdict on Bank of America
BAC has a strong fundamental positioning, driven by scalable AI capabilities, data advantage from its vast customer base and a well-executed strategy that blends digital efficiency with targeted branch expansion. With continued investments in technology and a disciplined expansion approach, the company will likely deliver steady margin expansion and long-term value creation.
In addition to this, BAC’s diversified revenue base across consumer banking, wealth management and institutional operations provides resilience across economic cycles. The bank continues to benefit from a large, low-cost deposit franchise, improving NII and disciplined cost management, all of which are expected to support steady profitability. Looking at these positives, it seems to be a wise idea to add the BAC stock to your portfolio now.
Analysts also seem optimistic regarding the company’s earnings growth potential. Over the past seven days, the Zacks Consensus Estimate for BAC’s 2026 and 2027 earnings has been revised upward. Earnings estimates for 2026 suggest a year-over-year rise of 22.1% and the estimates for 2027 indicate growth of 12.6%.
Earnings Estimate Revision
Image Source: Zacks Investment Research
At present, Bank of America carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Invest in Bank of America Following Impressive Q2 Results?

Citigroup, Inc. C delivered an impressive second-quarter performance, easily surpassing the Zacks Consensus Estimate, with strong growth in revenues and earnings. Other major banks, including Bank of America BAC and Wells Fargo WFC, also came out with solid quarterly results.
Citigroup generated its highest quarterly revenues of $24.76 billion in a decade, which jumped 14% year over year and topped Zacks Consensus Estimates by more than 4%. More impressively, second-quarter adjusted net income surged 45% on a year over year basis to $5.8 billion. This translated into adjusted earnings per share of $3.15, which crushed the Zacks Consensus Estimate by nearly 16% and climbed more than 60% from the prior year quarter.
Growth was broad-based across the franchise, with investment banking, markets, wealth management, services and consumer banking all contributing to the strong quarter. Citigroup also generated positive operating leverage as revenue growth significantly outpaced expense growth, highlighting that CEO Jane Fraser's multi-year restructuring efforts continue to improve the firm's operating efficiency.
C shares are also experiencing significant momentum, rising 14.4% year to date and outperforming the industry’s growth of 11.6%. Bank of America’s shares have risen 14% while Wells Fargo shares declined 6.4% over the same period.
Price Performance
Image Source: Zacks Investment Research
Most important for investors, significant progress in the ongoing overhaul plan and impressive earnings beat over the past four trailing quarters have prompted analysts to raise their earnings outlook, leading to favorable estimate revisions. Notably, for 2026 and 2027, earnings estimates rose 3.1% and 2.5%, respectively, in the last 30 days, respectively.
Estimate Revision Trend
Image Source: Zacks Investment Research
Citigroup is expected to post 40.8% year-over-year earnings growth this year, followed by a 15% rise in 2027.
Following the blockbuster second-quarter report, a sharp run-up in share price and upward estimate trend, does Citigroup’s stock still offers meaningful upside or if much of the optimism is already reflected in the stock price? To answer this, let us delve deeper and assess C’s investment potential in more detail.
Citigroup’s Performance Catalysts
Strategic Transformation: Citigroup has moved closer to completing its multi-year exit from non-core international consumer banking. The sale of the Polish consumer business in June 2026 marked the final international consumer divestiture apart from remaining wind-downs of Banamex. The company also sold an additional 22.6% stake in Banamex in the second quarter after selling 25% in late 2025. The remaining Banamex deconsolidation and IPO are planned for early 2027, with management expecting the transaction to free up $5 billion in capital.
These transactions follow the completed Russia exit and divestures of consumer franchises across Asia and EMEA. The simpler structure reduces operational complexity, releases capital and allows management to direct resources toward Services, Markets, Banking, Wealth and U.S. Consumer Cards. As the remaining divestitures and wind-downs conclude, lower stranded costs and a more focused allocation of capital should support the path toward higher sustainable returns.
Backed by these initiatives, Citigroup expects revenues, excluding Legacy Franchises and reconciling items, to see a mid-single-digit CAGR from 2025 through 2028. It also aims to achieve a return on tangible common equity (ROTCE) of 10-11% by 2026. C expects to reach 11-13% RoTCE, excluding notable items in 2027 and 2028, and then move toward 14-15% RoTCE over the medium term. This outlook reflects management’s belief that C’s business model is becoming simpler, more efficient and better able to translate revenue growth into shareholder value.
Cost-Optimization Initiatives: The company continues to execute its multi-year cost optimization strategy, centered on workforce rationalization, process simplification, automation and technology investments aimed at enhancing long-term productivity and profitability.
As part of its restructuring program, the company remains on track to eliminate 20,000 positions by the end of 2026. Its total headcount declined to 219,000 as of June 30, 2026, from 230,000 a year earlier. In the first half of 2026, the bank incurred more than $800 million in severance costs, reflecting upfront investments to achieve sustainable operating efficiencies.
Beyond workforce optimization, management is driving efficiency through process simplification, platform consolidation and increased automation, reducing manual touchpoints across operations. At the same time, the company continues to invest in technology and artificial intelligence to strengthen operational resilience, improve productivity and support future revenue growth. To accelerate these initiatives, Citigroup plans to invest an incremental $5 billion between 2026 and 2028, with spending focused on technology modernization, marketing, front-office talent and branch renovations.
Management expects workforce optimization, organizational simplification and technology investments to generate $2-$2.5 billion of annualized cost savings by 2026. The company continues to target a full-year efficiency ratio of 60%. While a portion of these savings will enhance profitability, management intends to reinvest part of the benefits into technology, talent and strategic growth initiatives to support sustainable long-term returns.
Interest Rate Outlook Remains Supportive: NII has been a key contributor to Citigroup’s earnings power and management expects growth to continue amid a shifting rate environment. NII witnessed a three-year CAGR of 6.2% (ended 2025). The uptrend continued in the first half of 2026. Also, the company has been witnessing solid growth in loans and deposit balances.
Though the Federal Reserve is expected to hike the interest rates later this year, Citigroup’s NII will continue to grow, given stabilizing funding/deposit costs and solid loan demand. Management expects NII, excluding Markets, to increase 5-6% in 2026, supported by loan growth and stabilizing funding dynamics.
Liquidity Strength Powers Shareholder Payouts: C enjoys a strong liquidity position. As of June 30, 2026, Citigroup’s cash and due from banks and total investments aggregated to $449.4 billion, lower than its total debt (short-term and long-term borrowing) of $373.3 billion.
Post-clearing the 2026 stress test, the company hiked its dividend 11.7% to 67 cents per share. In the past five years, it has raised its dividends four times. By comparison, Wells Fargo and Bank of America have raised their dividends six and five times, respectively, during the past five years.
Coming back to Citigroup, it maintains a modest payout ratio of 23%, indicating adequate scope to sustain distributions. The company’s annual dividend yield of 1.82% is higher than the industry average, providing investors with a steady income stream while management continues to execute its turnaround strategy.
Citigroup has also remained active in repurchasing shares. The board authorized a $30-billion buyback commitment in June 2026, with no expiry date.
Including dividends, C’s total return over the past three years has been nearly 208% compared with the industry’s average of 136.9%. Thus, the combination of potential capital appreciation, dependable dividend income and continued share repurchases enhances the stock’s total-return prospects. Supported by Citigroup’s robust liquidity and capital levels, its shareholder payout activities appear sustainable.
Total Return Performance
Image Source: Zacks Investment Research
Final View on Citigroup
C’s multi-year transformation is beginning to translate into a stronger earnings profile. The bank’s divestitures, expense-control measures, AI-driven productivity initiatives and increasing focus on higher-return businesses should support revenue growth, operating efficiency and profitability over time. Its solid liquidity position, dividend growth and planned share repurchase further strengthen the investment case.
Wall Street sentiment also remains favorable. Citigroup has an average brokerage recommendation of 1.76 on a scale of 1 to 5, wherein 1 represents Strong Buy and 5 represents Strong Sell. Of the 25 brokerage recommendations, 15 are Strong Buy and three are Buy, representing 60% and 12% of the total, respectively. Check price target & stock forecast for Citigroup here>>>
Brokerage Rating Breakdown for C
Image Source: Zacks Investment Research
Valuation remains another key positive. Citigroup trades at a forward P/E multiple of 10.86X, below the industry average of 14.06X and its peers Bank of America and Wells Fargo’s multiples of 12.44X and 11.32X, respectively. Citigroup’s discounted valuation despite a sharp increase in share price indicates that the market is still pricing in relatively cautious expectations for its long-term earnings potential.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
This leaves scope for further upside. If management continues to improve returns, control costs and narrow the profitability gap with peers, Citigroup could benefit from both earnings growth and valuation-multiple expansion.
As such, supported by improving fundamentals, disciplined capital returns and favorable analyst sentiment, Citigroup offers an attractive combination of value and growth potential.
Citigroup currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Citigroup Stock Still a Buy After Its Blockbuster Q2 Performance?

Key Points
Meta Platforms accounts for a significant chunk of CoreWeave's massive revenue backlog.
However, CoreWeave could sustain impressive levels of growth even if it loses its Meta business on account of a massive shortage of AI data center capacity.
Shares of CoreWeave (NASDAQ: CRWV) have been in free-fall mode lately, losing 35% of their value over the past three months, as investors have been concerned about the neocloud infrastructure provider's aggressive spending to build dedicated artificial intelligence (AI) infrastructure.
CoreWeave stock received another jolt earlier this month after reports emerged that Meta Platforms (NASDAQ: META), one of its key customers, plans to sell its excess AI data center capacity. It was easy to see why that was the case, but I think that investors are underestimating the AI infrastructure specialist's long-term prospects.
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Here's why.
Meta constitutes a significant chunk of CoreWeave's backlog, but it can grow at a solid pace without the tech giant
CoreWeave announced in April that it has expanded its AI infrastructure agreement with Meta Platforms in a deal worth $21 billion. What's worth noting is that this deal builds upon the original $14.2 billion agreement signed between the two companies in September 2025. These contracts run through December 2032, and the total value is just over $35 billion.
So, reports of Meta deciding to compete with CoreWeave by offering to sell excess AI compute capacity have further added to the latter's misery. Of course, CoreWeave's $35 billion long-term contract with Meta explains why this news has caused panic among investors, especially considering that it accounts for a significant chunk of the neocloud provider's $99.4 billion revenue backlog.
However, even if Meta takes away its business from CoreWeave owing to the excess cloud computing capacity that it may be sitting on, and starts competing with the latter, it may not dent the neocloud company's long-term growth. That's because there is a shortage of dedicated AI data centers. According to Bank of America, data center power demand could exceed capacity additions by 100 gigawatts (GW) by 2030.
So, if Meta decides against buying AI compute capacity from CoreWeave, it can easily find another customer to fill the vacuum. Also, there is sufficient space for additional dedicated AI data center providers to operate in this market, given the supply gap noted above. All this explains why analysts continue to remain bullish about CoreWeave's growth prospects.
The stock could become a multibagger
CoreWeave's revenue is anticipated to jump 147% in 2026 to $12.66 billion. The chart given above makes it clear that the neocloud specialist will sustain impressive growth levels in the long run. This is what makes CoreWeave a top AI stock to buy right now, as it trades at an attractive 5.8 times sales. The tech-laden Nasdaq Composite index, for comparison, has a price-to-sales ratio of 5.1.
Even if CoreWeave trades at just 5 times sales after three years and its revenue reaches $40 billion, the company's market cap could jump by almost 5x to $200 billion.
So, savvy investors can consider using the recent pullback in CoreWeave stock to buy its shares, as it could skyrocket impressively due to the enormous demand for AI data center capacity.
Should you buy stock in CoreWeave right now?
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Bank of America is an advertising partner of Motley Fool Money. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Mark Zuckerberg's Meta Is Also One of CoreWeave's Biggest Customers, in a Deal Worth $35 Billion Through 2032. That Didn't Stop CoreWeave Shares From Sinking on Meta's Own Cloud News.

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