Centene Corporation operates as a healthcare enterprise that provides programs and services to under-insured and uninsured families, commercial organizations, and military families in the United States. The company operates through Medicaid, Medicare, Commercial, and Other segments. The Medicaid segment offers health plan coverage, including medicaid expansion, aged, blind, disabled, children's health insurance program, foster care, medicare-medicaid plans, long-term services and support. This segment also provides healthcare products. The Medicare segment offers special needs and medicare supplement, and prescription drug plans. The Commercial segment provides health insurance marketplace product for individual, small, and large group commercials. It also operates clinical healthcare and pharmacies, as well as offers dental and speech therapy services. In addition, the company engages in the government contracts business under the TRICARE program and other healthcare related government contracts. It provides services through primary and specialty care physicians, hospitals, and ancillary providers. Centene Corporation was founded in 1984 and is headquartered in Saint Louis, Missouri.

Centene looks like a large insurer trading at low valuation multiples, but the quality of the current financial reporting is noticeably weaker than the low valuation suggests. P/S of 0.16, P/B of 1.47, and P/FCF of 4.45 look cheap relative to the industry, supporting the case for undervaluation; however, this is partly explained by weak profitability and the business’s high sensitivity to medical costs and regulation. The P/E is formally low, but the TTM value is zero, so this signal cannot be considered a reliable driver of re-rating. Revenue remains very large and generally grows over time, confirming the scale of the business and steady demand for its services. At the same time, gross margin has declined to 7.18, while operating and net margins in TTM have fallen to zero, indicating pressure on profitability and making the valuation less convincing. ROE, ROA, ROI, and return on tangible equity are also zero in TTM, although they were positive previously, which worsens the picture of capital efficiency. The balance sheet’s strength remains liquidity: cash on hand is high, the current ratio is above 1, and equity has increased significantly, reducing the risk of near-term stress. But the quick ratio is zero, and debt/equity is above the industry median, so leverage and the structure of current assets do not look ideal. Long-term debt has declined over the last periods, which is a positive, but the overall level of liabilities is still large relative to profit and capital. EBITDA and operating income are positive in TTM, and EPS remains strong, suggesting the business is still able to generate results despite quarterly volatility. Overall, the fundamentals support a moderately positive view of fair value, but do not justify an aggressive target increase, since low multiples are paired with weakening margins and efficiency. For an investor, this is a story of a high-quality large-scale business with a cheap valuation, but with notable operating risks and limited re-rating potential without a margin recovery.

Centene Corporation

Слабый индекс, без изменений. Уверенность быков остается на низком уровне.

Weak index, flat. Bullish confidence remains low.

Сильный индекс, без изменений. Медведи в растерянности.

Strong index, flat. The bears are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Рынок на стороне медведей.

Strong index, flat. The market is on the bears' side.

Сильный индекс, без изменений. Приток средств в лонги на высоком уровне.

Strong index, flat. Inflow of funds into longs at a high level.

Средний индекс, незначительно упал. Приток средств в шорты снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into shorts has decreased, but remains positive.

Centene looks cheap on valuation multiples and maintains its revenue scale, but weak margins, zero TTM profitability, and elevated debt burden are limiting the upside.

UnitedHealth Group Incorporated UNH is beginning to restore investor confidence after one of its toughest periods in recent years. The company spent much of the past year battling elevated medical costs, regulatory scrutiny and concerns over earnings growth. However, its second-quarter 2026 results suggest those headwinds are starting to ease. Better cost control, another earnings beat and a higher full-year outlook indicate that management, under CEO Stephen Hemsley, is making tangible progress in improving profitability.
Shares rallied sharply after the earnings release as investors welcomed the healthier medical care ratio and improved earnings outlook. Although the stock has since surrendered part of those gains, it remains up 2.5% since the results, suggesting confidence in the turnaround story remains intact.
Looking at the year-to-date period, UNH stock has gained 29.9%, outperforming the industry’s 25.8% growth and the S&P 500’s 7.8% rise. Peers like Molina Healthcare, Inc. MOH and Centene Corporation CNC have increased 15.5% and 55.3%, respectively, during this time.
Price Performance – UNH, MOH, CNC, Industry & S&P 500
Image Source: Zacks Investment Research
Cost Control is Finally Delivering Results
It reported second-quarter 2026 adjusted EPS of $6.38, which beat the Zacks Consensus Estimate of $4.94 and rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion and beat the consensus mark by 1.7%. More important than the earnings beat was the improvement in underlying profitability.
The adjusted medical care ratio improved to 86.7% from 89.4% a year earlier and came in lower than the Zacks Consensus Estimate of 88.5%, reflecting stronger pricing, disciplined benefit design and better medical cost management. Medical costs of $75.4 billion declined from $78.6 billion a year ago. This improvement is significant because medical costs have been the biggest challenge facing managed care companies over the past two years. Higher utilization, especially among Medicare Advantage members, compressed margins across the industry. UnitedHealth's latest results suggest those pressures are beginning to ease.
Premium revenues continued to grow, while Optum remained a steady contributor through its pharmacy services and healthcare delivery businesses. The diversified structure of the company once again proved valuable, helping offset pressure in its insurance business while supporting overall profitability. Operating earnings grew to $8 billion from $5.2 billion a year ago.
Management also raised its full-year 2026 adjusted earnings outlook to a range of $19.50-$20 per share. Raising guidance for a second consecutive quarter reinforced confidence that the operational improvements are sustainable. The combination of improving margins, higher earnings guidance and disciplined execution explains why investors reacted positively following the earnings release.
For further details, see UnitedHealth Tops Q2 Earnings on Cost Control, Raises '26 Outlook.
Estimate Revisions Are Trending Higher
The Zacks Consensus Estimate for 2026 EPS is now pegged at $19.48, indicating 19.1% year-over-year growth. The earnings estimate has seen 11 upward revisions over the past month against no downward movement. The consensus estimate for revenues is pegged at $446.42 billion, implying a 0.3% decline from a year ago.
For 2027, EPS is now projected to grow to $22.17, marking a 13.8% improvement. It has also seen 10 upward estimate revisions in the past month, against no downward movements. Revenues are pegged at $457.04 billion, indicating 2.4% growth from a year ago.
The company beat earnings estimates in each of the past four quarters, producing an average earnings surprise of 12.1%.
UnitedHealth Group Incorporated Price and EPS Surprise
Valuation Not Cheap
The stock’s momentum has pushed valuation slightly above historical levels. UNH now trades at a forward P/E of 20.39X, above its five-year median of 19.20X and well above the industry average of 17.49X. In comparison, Molina and Centene are currently priced at 27.71X and 15.91X, respectively, both significantly higher than their own five-year median multiples.
Image Source: Zacks Investment Research
Wall Street remains constructive. Even after the stock’s rally, shares remain below the average analyst price target of $481.52, implying roughly 15.3% upside. That suggests expectations have improved, though the stock no longer offers the valuation cushion it did earlier this year.
Risks Still Deserve Attention
The turnaround is encouraging, but investors should not ignore the remaining challenges.
Regulatory scrutiny continues to cast a shadow over the company. Ongoing investigations involving Medicare billing practices and aspects of the Optum business could create headline risk and potentially increase compliance costs. The company is also reshaping its PBM model with a transparent, fee-based approach that breaks the link between pricing, drug list prices and prescription volume. If successful, it could become a meaningful competitive advantage.
Healthcare utilization remains another key watch point. Although medical costs improved during the quarter, utilization patterns can shift, particularly within Medicare Advantage. If claims activity accelerates faster than pricing adjustments can offset it, margin expansion could slow.
While management expects total medical membership to decline in 2026 to 46.945-47.495 million from nearly 49.760 million in 2025, growth in commercial fee-based membership should help offset part of the decline. Even so, the transition warrants close monitoring.
The Long-Term Story Still Holds
UnitedHealth's scale, diversified business model and extensive healthcare data capabilities give it competitive advantages that few peers can match. The company also stands to benefit from long-term industry tailwinds, including an aging population, rising rates of chronic disease and growing demand for healthcare services.
The company continues to generate strong cash flows and return capital to shareholders. It returned more than $13 billion through dividends and share repurchases in 2025. Through mid-July 2026, UnitedHealth had repurchased $4 billion of stock and remains on track to buy back at least $5 billion for the full year. It also paid $4.1 billion in dividends during the first half of 2026.
Conclusion
UnitedHealth's second-quarter results reinforced that its turnaround is gaining traction. Improving medical cost trends, another guidance increase and strong earnings execution have helped restore investor confidence after a difficult period.
While regulatory scrutiny, membership declines and utilization trends remain key risks, the company is demonstrating that disciplined pricing and cost management can support sustained margin recovery. Combined with its diversified business model, solid cash generation and favorable long-term healthcare trends, UnitedHealth appears well positioned for further gains. Reflecting the improving earnings outlook and strong estimate revisions, the stock currently sports a Zacks Rank #1 (Strong Buy), making it an attractive choice for investors seeking exposure to the managed care space. You can see the complete list of today’s Zacks #1 Rank stocks here.
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UnitedHealth's Cost-Control Story is Gaining Momentum: Time to Buy?

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Centene (CNC) Q2 2026 Earnings Call Transcript

Centene Corporation CNC reported second-quarter 2026 adjusted earnings per share (EPS) of $2.51, which surpassed the Zacks Consensus Estimate of 89 cents. Moreover, the bottom line climbed from a loss of 16 cents per share a year ago.
Revenues totaled $53.6 billion, which rose 9.9% year over year. The top line beat the consensus mark by 12.7%.
The strong quarterly results benefited from strong premium and services revenues in Medicaid and Medicare businesses, fueled by increased premium yield, expanding membership in the Prescription Drug Plan (PDP) business and rate hikes in Marketplace and Medicaid businesses. However, the upside was partly offset by a decline in total membership and an increase in medical costs.
Centene Corporation Price, Consensus and EPS Surprise
Quarterly Operational Update of CNC
Revenues from Medicare advanced 17% year over year to $11.1 billion, and Medicaid revenues of $22.8 billion rose 5% in the quarter under review. Meanwhile, commercial revenues came in at $9.4 billion, down 7% year over year.
Centene's premium of $43.6 billion grew 4.4% year over year on the back of higher premiums yield, increased membership in the PDP business and strength in the Medicaid and Marketplace rate hikes. The metric beat the Zacks Consensus Estimate of $42.5 billion.
Service revenues rose 9.1% year over year to $793 million in the second quarter and surpassed the consensus mark of $723 million. Investment and other income of $435 million improved 17.3% year over year and topped the Zacks Consensus Estimate of $359 million.
Total membership was 25.9 million as of June 30, 2026, which decreased 7.6% year over year due to membership declines in the Medicaid, Marketplace and Medicare businesses. However, the metric marginally beat the consensus mark.
Centene’s health benefits ratio improved 340 basis points year over year to 89.6% in the quarter under review. Operating expenses totaled $52.4 billion, which increased 6.5% year over year due to higher medical costs, selling, general and administrative expenses, cost of services and premium tax expense. Medical costs escalated 0.6% year over year.
Adjusted net earnings were recorded at $1.2 billion against the year-ago loss of $79 million.
CNC’s Q2 Financial Update (As of June 30, 2026)
Centene exited the second quarter with cash and cash equivalents of $24.2 billion, which rose 35% from the 2025-end level. Total assets of $83 billion grew 8.2% from the figure at 2025-end.
Long-term debt amounted to $16 billion, down 7.6% from the figure as of Dec. 31, 2025. The current portion of long-term debt totaled $75 million.
Total stockholders’ equity of $22.6 billion increased 13% from the 2025-end figure.
Centene generated $8 billion of net cash from operations in the first half of 2026, which increased from the prior-year comparable period’s $3.3 billion.
CNC’s Revised 2026 Guidance
Management now expects premium and service revenues within the band of $173-$177 billion for 2026, up from the previous guidance range of $171-$175 billion. The midpoint of which indicates growth of 0.2% from the 2025 reported figure.
Revenues are now estimated between $193.5 billion and $197.5 billion, up from the previously projected band of $187.5 billion-$191.5 billion, the midpoint of which implies a 0.4% increase from the 2025 figure.
Adjusted EPS is now expected to be greater than $4.80, higher than the previously projected figure of $3.40, which indicates a surge of more than 130.8% from the 2025 figure. GAAP EPS is now forecasted to remain greater than $3.11.
Health benefits ratio is now estimated to be in the band of 90.5-91.3% for 2026, while the adjusted SG&A expense ratio is now anticipated to be 6.9-7.5%. The adjusted effective tax rate is now expected to be in the range of 25.5-26.5%.
Shares outstanding are now projected to be between 497 million and 500 million.
CNC’s Zacks Rank
CNC currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Peers Perform?
Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation THC, Elevance Health, Inc. ELV and UnitedHealth Group Incorporated UNH. Here's how they have performed:
Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions.
Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses.
UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains.
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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.
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Centene Q2 Earnings Beat Estimates on Increasing Premiums

(RTTNews) - Centene Corporation (CNC) will host a conference call at 8:30 AM ET on July 28, 2026, to discuss Q2 26 earnings results.
To access the live webcast, log on to https://investors.centene.com/events-presentations
To listen to the call, dial 1-877-883-0383 (US) or +1-412-902-6506 (International), Elite Entry Number: 4306002.
For a replay call, dial 1-855-669-9658 (US) or +1-412-317-0088 (International) with access code 6500508.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Centene Q2 26 Earnings Conference Call At 8:30 AM ET

(RTTNews) - Tuesday, Centene Corporation (CNC) announced its second-quarter financial results, reporting a net income of $1.091 billion, or $2.19 a share, attributable to the company, compared with a loss of $253 million, or $0.51 a share, in the prior year.
The company returned to profitability this quarter, primarily driven by higher operating earnings.
On an adjusted basis, earnings totaled $1.248 billion, or $2.51 per share, versus a loss of $79 million, or $0.16 per share, in the earlier year.
Total revenues increased to $53.579 billion from last year's $48.742 billion.
Looking ahead to the full year 2026, the company has raised its total revenues guidance range by $6.0 billion to a range of $193.5 billion to $197.5 billion, driven by premium tax revenue, Marketplace, and Medicaid.
Also, it now anticipates earnings of more than $3.11 per share and adjusted earnings of over $4.80 per share for the full year 2026.
Concurrently, the company announced the retirement of Kenneth Burdick from its Board of Directors. He will be replaced by Paul Diaz, effective July 28, 2026. Diaz is a Managing Partner at Cressey & Company, a private investment firm.
In the pre-market hours, CNC is trading at $65.30, up 1.93 percent on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Centene Returns To Profit In Q2, Raises FY26 Outlook, Announces Board Of Directors Changes

Healthcare plan provider Centene Corporation CNC is set to report second-quarter 2026 results on July 28, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 89 cents per share on revenues of $47.53 billion.
The second-quarter earnings estimate remained stable over the past 60 days. The bottom-line projection indicates a year-over-year improvement from a loss of 16 cents per share. However, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 2.5%.
For 2026, the Zacks Consensus Estimate for Centene’s revenues is pegged at $190.97 billion, implying a fall of 2% year over year. Yet, the consensus mark for 2026 EPS is pegged at $3.46, signaling a growth of 66.4% year over year.
Centenebeat earnings estimates in three of the last four quarters and missed once, with the average surprise being 74.9%. This is depicted in the figure below.
Centene Corporation Price and EPS Surprise
Q2 Earnings Whispers for Centene
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.
CNC has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Shaping Centene’s Q2 Results?
The Zacks Consensus Estimate for the company’s total commercial memberships indicates a 39.1% year-over-year decrease, primarily due to a decline in the commercial marketplace. The consensus estimate for the company’s total Medicaid memberships indicates a 4.6% decline from a year ago.
As such, the Zacks Consensus Estimate for total membership indicates a 7.6% year-over-year decline, which reflects its portfolio optimization efforts. However, the consensus mark for Medicare PDP memberships signals 12.1% growth from the year-ago quarter.
The consensus estimate projects the company’s premium growth at only 1.8% year over year. The consensus mark for the company’s investment and other income indicates a 3.2% year-over-year decline from $371 million. Moreover, the projection for service revenues indicates a 0.6% fall from the year-ago quarter’s $727 million. These are likely to have affected the second quarter top line.
Nevertheless, due to its cost-curbing efforts, better pricing and portfolio optimization, the bottom line is likely to have improved. The Zacks Consensus Estimate for the total health benefits ratio is pegged at 91.5%, down from 93% in the year-ago period, meaning a higher portion of premiums remaining in hand after paying claims.
CNC’s Price Performance & Valuation
Centene's stock has gained 64.3% in the year-to-date period compared with the industry’s growth of 31%. Its peers, such as Humana Inc. HUM and Molina Healthcare, Inc. MOH, have jumped 57.9% and 30.5%, respectively, during this time. Meanwhile, the S&P 500 has only increased 9.5%.
YTD Price Performance – CNC, HUM, MOH, Industry & S&P 500
Now, let’s look at the value Centene offers investors at current levels.
CNC is trading at 16.91X forward 12-month earnings, above its five-year median of 11.31X. But it is still below the industry’s average of 18.12X. In comparison, Humana and Molina Healthcare are currently trading at 31.75X and 31.80X, respectively.
How Should You Play CNC Stock Now?
The company has made meaningful progress in restoring profitability through disciplined pricing, portfolio optimization and cost-control initiatives following last year's setback. A healthier medical benefit ratio, stronger cash generation and improving performance in its Medicaid and Medicare businesses provide reasons for optimism, while the stock's sharp year-to-date rally reflects growing investor confidence in the turnaround.
However, expectations have also become more demanding. Membership declines tied to portfolio optimization are likely to weigh on revenue growth, and Centene remains exposed to policy changes affecting government-sponsored healthcare programs. Elevated operating costs, despite signs of moderation, and below-average capital efficiency also suggest that the turnaround is still a work in progress.
Given these factors, existing shareholders may prefer to hold the stock and monitor management's commentary on medical costs, reimbursement trends and membership growth after the earnings release. New investors, meanwhile, may benefit from waiting for greater clarity on the company's execution and full-year outlook before initiating positions.
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.
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Is Centene Stock a Smart Buy Ahead of Q2 Earnings? Key Estimates

The S&P 500 Index ($SPX) (SPY) on Wednesday closed up +0.38%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.29%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.28%. September E-mini S&P futures (ESU26) rose +0.35%, and September E-mini Nasdaq futures (NQU26) fell -0.30%.
Stock indexes settled mixed on Wednesday, with the S&P 500 posting a 6-week high. The broader market garnered support from Wednesday’s US economic news, which showed that June producer prices rose less than expected and the July Empire manufacturing survey rose more than expected.
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Strength in technology stocks also bolstered the broader market, following strong earnings from ASML, which offered fresh evidence of the relentless demand for chips needed for the global artificial intelligence buildout. ASML is the only maker of sophisticated lithography machines needed to manufacture advanced semiconductors. Also, Apple closed up more than 4% to lead the Magnificent Seven technology stocks higher after China approved the rollout of Apple's generative artificial intelligence feature.
However, the Nasdaq 100 settled lower on Wednesday amid a rout in chipmakers. Also, health insurance stocks were under pressure after Elevance Health plunged following its updated guidance that fell short of the second-quarter beat.
US MBA mortgage applications fell -2.7% in the week ended July 10, with the purchase mortgage sub-index down -7.3% and the refinancing mortgage sub-index up +3.5%. The average 30-year fixed-rate mortgage rose +7 bp to 6.65% from 6.58% in the prior week.
US Jun PPI final demand eased to +5.5% y/y from +6.0% y/y, weaker than expectations of +6.2% y/y. Jun PPI ex food and energy rose +4.7% y/y, weaker than expectations of +5.1% y/y.
The US Jul Empire manufacturing survey of general business conditions rose +9.9 to 15.6, stronger than expectations of 9.2.
Dovish comments on Wednesday from New York Fed President John Williams were supportive for stocks and bonds when he said, "Inflation is unquestionably too high, but there are encouraging reasons to expect that inflation has peaked and should edge down in coming quarters."
The Fed Beige Book was mixed for stocks as it stated that economic activity in the 12 Fed regions increased at a slight to moderate pace in the 6 weeks to July 6, unchanged from June's summary. Most regions reported little to no change in employment and, "consumer prices continued to rise, with several districts reporting their contacts saw greater price sensitivity among their customers."
Chinese economic news was mixed for global growth prospects. On the negative side, China's Q2 GDP rose +4.3% y/y, slightly weaker than expectations of +4.4% y/y and the smallest increase in 3.5 years. Also, Jun new home prices fell by -0.15% m/m, marking the 37th consecutive month of declines. On the positive side, China's industrial production rose 5.3% y/y, stronger than the expected 4.6% y/y. Also, Jun retail sales unexpectedly rose +1.0% y/y, stronger than expectations of -0.1% y/y. In addition, the Jun surveyed jobless rate unexpectedly fell -0.1 to 5.0%, showing a stronger labor market than expectations of no change at 5.1%.
On the negative side, geopolitical risks are ramping up, as the interim peace deal between the US and Iran has effectively collapsed. The US maintained its naval blockade of Iran and launched another wave of airstrikes on Iran on Wednesday, the fifth straight day of attacks. President Trump pledged to intensify the bombardment until Iran stops attacking ships in the Strait of Hormuz and agrees to open the waterway. Iran responded with missile and drone attacks against Kuwait.
The outlook for strong Q2 earnings, which will begin this week, is a bullish factor for stocks. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.
The markets are discounting a 10% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed down -0.23%. China's Shanghai Composite closed down -0.29%. Japan's Nikkei-225 Stock Average closed up +1.49%.
Interest Rates
September 10-year T-notes (ZNU6) on Wednesday closed up +12 ticks, and the 10-year T-note yield fell -4.8 bp to 4.541%. T-notes recovered from early losses on Wednesday and moved higher after US Jun producer prices rose less than expected, a dovish factor for Fed policy. T-notes added to their gains on Wednesday when New York Fed President John Williams said, “there are encouraging reasons to expect that inflation has peaked and should edge down in coming quarters." T-notes initially moved lower on Wednesday’s strength in WTI crude oil prices, which boosts inflation expectations and is bearish for T-notes.
European government bond yields were mixed on Wednesday. The 10-year German bund yield rose to a 1.75-month high of 3.148% and finished up +0.8 bp to 3.122%. The 10-year UK gilt yield fell -4.0 bp to 4.937%.
Eurozone May industrial production unexpectedly fell -0.2% m/m, weaker than expectations of a+0.2% m/m increase.
ECB Governing Council member and Bundesbank President Joachim Nagel said, "The development of energy prices is a decisive factor in determining the future inflation outlook, and monetary policy will maintain its vigilant stance."
Swaps are discounting a 6% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
Strength in the Magnificent Seven technology stocks was a supportive factor for the overall market on Wednesday. Apple (AAPL) closed up more than +4% to lead gainers in the Dow Jones industrials after Bloomberg News reported the company received government approval to roll out its Apple Intelligence generative artificial intelligence feature in China. Also, Alphabet (GOOGL), Amazon.com (AMZN), and Meta Platforms (META) closed up more than +3%. In addition, Microsoft (MSFT) closed up more than +2% and Nvidia (NVDA) closed up +0.33%. Bucking the trend, Tesla (TSLA) closed down -0.46%.
Software stocks settled higher on Wednesday, recovering some of Tuesday’s sharp losses. Thomson Reuters (TRI) closed up more than +4%, and Atlassian Corp (TEAM) and Oracle (ORCL) closed up more than +3%. Also, Adobe Systems (ADBE), Workday (WDAY), and Autodesk (ADSK) closed up more than +1%.
Chipmakers and AI-infrastructure stocks were under pressure on Wednesday, a negative factor for the broader market. The iShares Semiconductor ETF (SOXX) closed down more than -2%. Western Digital (WDC) closed down more than -8% to lead losers in the Nasdaq 100, and Sandisk (SNDK) and Micron Technology (MU) closed down more than -6%. Also, Marvel Technology (MRVL) closed down more than -7%, and Seagate Technology Holdings Plc (STX) closed down more than -5%. In addition, Intel (INTC) closed down more than -4%, and Advanced Micro Devices (AMD) and Lam Research (LRCX) closed down more than -3%.
Elevance Health (ELV) closed down more than -8% to lead health insurance stocks lower after Evercore ISI said the company’s updated guidance was “lower” than the beat in the second quarter. Also, Molina Healthcare (MOH) and Centene (CNC) closed down more than -3%, and Cigna Group (CI) and UnitedHealth Group (UNH) closed down more than -1%.
PayPal Holdings (PYPL) closed up more than +17% to lead gainers in the S&P 500 and Nasdaq 100 after Reuters reported Stripe and Advent International have made a joint offer to buy the company for $53 billion, or $60.50 per share.
Karman Holdings (KRMN) closed up more than +6% after S&P Dow Jones Indices reported that the company will replace BrightSpring Health Services in the S&P SmallCap 600 effective before the opening of trading on Friday, July 17.
BlackRock (BLK) closed up more than +6% after reporting Q2 adjusted EPS of $13.91, well above the consensus of $12.66.
Lionsgate Studios (LION) is up more than +6% after Reuters reported the company is exploring a sale and has attracted takeover interest from Bollore Group.
Cintas (CTAS) closed up more than +4% after reporting Q2 revenue of $2.91 billion, better than the consensus of $2.87 billion, and forecasting 2027 revenue of $12.10 billion to $12.25 billion, the midpoint above the consensus of $12.12 billion.
3M Co (MMM) closed up more than +2% after announcing a strategic partnership with Microsoft focused on AI data center infrastructure and enterprise transformation.
Pentair Plc (PNR) closed down -15% to lead losses in the S&P 500 after cutting its full-year adjusted EPS forecast to $4.60 to $4.80 from a previous forecast of $5.30 to $5.40, well below the consensus of $5.33.
Phoenix Education Partners (PXED) closed down more than -12% after cutting its 2026 net revenue forecast to $1.02 billion to $1.03 billion from a previous estimate of $1.03 billion to $1.04 billion.
Progressive Corp (PGR) closed down more than -9% after reporting Q2 net premiums written were $21.08 billion, below the consensus of $21.29 billion.
Travelers Cos (TRV) closed down more than -2% after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $290.
Earnings Reports(7/16/2026)
Abbott Laboratories (ABT), Alcoa Corp (AA), Citizens Financial Group Inc (CFG), Commerce Bancshares Inc/MO (CBSH), FNB Corp/PA (FNB), General Electric Co (GE), Intuitive Surgical Inc (ISRG), Netflix Inc (NFLX), Prologis Inc (PLD), State Street Corp (STT), UnitedHealth Group Inc (UNH), US Bancorp (USB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Broader Market Settles Higher as Positive Inflation News Outweighs Chip Rout

The S&P 500 Index ($SPX) (SPY) today is up +0.15%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.35%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.64%. September E-mini S&P futures (ESU26) are up +0.16%, and September E-mini Nasdaq futures (NQU26) are down -0.60%.
Stock indexes are mixed today, with the S&P 500 posting a 1-month high. The broader market garnered support from today’s US economic news, which showed that June producer prices rose less than expected and the July Empire manufacturing survey rose more than expected.
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Strength in technology stocks is also positive for the broader market, following strong earnings results from ASML, which offered fresh evidence of the relentless demand for chips needed for the global artificial intelligence buildout. ASML is the only maker of sophisticated lithography machines needed to manufacture advanced semiconductors.
However, the Nasdaq 100 fell into negative territory amid weakness in chipmakers. Also, health insurance stocks are under pressure after Elevance Health plunged following its updated guidance that fell short of the second-quarter beat.
US MBA mortgage applications fell -2.7% in the week ended July 10, with the purchase mortgage sub-index down -7.3% and the refinancing mortgage sub-index up +3.5%. The average 30-year fixed-rate mortgage rose +7 bp to 6.65% from 6.58% in the prior week.
US Jun PPI final demand eased to +5.5% y/y from +6.0% y/y, weaker than expectations of +6.2% y/y. Jun PPI ex food and energy rose +4.7% y/y, weaker than expectations of +5.1% y/y.
The US Jul Empire manufacturing survey of general business conditions rose +9.9 to 15.6, stronger than expectations of 9.2.
Dovish comments today from New York Fed President John Williams were supportive for stocks and bonds when he said, "Inflation is unquestionably too high, but there are encouraging reasons to expect that inflation has peaked and should edge down in coming quarters."
Chinese economic news was mixed for global growth prospects. On the negative side, China's Q2 GDP rose +4.3% y/y, slightly weaker than expectations of +4.4% y/y and the smallest increase in 3.5 years. Also, Jun new home prices fell by -0.15% m/m, marking the 37th consecutive month of declines. On the positive side, China's industrial production rose 5.3% y/y, stronger than the expected 4.6% y/y. Also, Jun retail sales unexpectedly rose +1.0% y/y, stronger than expectations of -0.1% y/y. In addition, the Jun surveyed jobless rate unexpectedly fell -0.1 to 5.0%, showing a stronger labor market than expectations of no change at 5.1%.
On the negative side, geopolitical risks are ramping up, as the interim peace deal between the US and Iran has effectively collapsed. The US maintained its naval blockade of Iran and launched another wave of airstrikes on Iran today, the fifth straight day of attacks. President Trump pledged to intensify the bombardment until Iran stops attacking ships in the Strait of Hormuz and agrees to open the waterway. Iran responded with missile and drone attacks against Kuwait.
The outlook for strong Q2 earnings, which will begin this week, is a bullish factor for stocks. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.
The markets are discounting a 12% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.08%. China's Shanghai Composite closed down -0.29%. Japan's Nikkei-225 Stock Average closed up +1.49%.
Interest Rates
September 10-year T-notes (ZNU6) today are up +8 ticks, and the 10-year T-note yield is down -3.6 bp to 4.553%. T-notes recovered from early losses today and moved higher after US Jun producer prices rose less than expected, a dovish factor for Fed policy. T-notes added to their gains today when New York Fed President John Williams said, “there are encouraging reasons to expect that inflation has peaked and should edge down in coming quarters." T-notes initially moved lower on today’s strength in WTI crude oil prices, which boosts inflation expectations and is bearish for T-notes.
European government bond yields are mixed today. The 10-year German bund yield rose to a 1.75-month high of 3.148% and is up +0.1 bp to 3.115%. The 10-year UK gilt yield is down -3.4 bp to 4.943%.
Eurozone May industrial production unexpectedly fell -0.2% m/m, weaker than expectations of a+0.2% m/m increase.
ECB Governing Council member and Bundesbank President Joachim Nagel said, "The development of energy prices is a decisive factor in determining the future inflation outlook, and monetary policy will maintain its vigilant stance."
Swaps are discounting a 6% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
Software stocks are climbing today, recovering some of Tuesday’s sharp losses. Thomson Reuters (TRI) is up more than +6%, and Atlassian Corp (TEAM) is up more than +4%. Also, Adobe Systems (ADBE) is up more than +3%, and Microsoft (MSFT), Oracle (ORCL), and Workday (WDAY) are up more than +2%. In addition, ServiceNow (NOW), Salesforce (CRM), and Autodesk (ADSK) are up more than +1%.
Chipmakers and AI-infrastructure stocks are under pressure today, a negative factor for the broader market. The iShares Semiconductor ETF (SOXX) is down more than -2%. Sandisk (SNDK) is down more than -12% to lead losers in the Nasdaq 100, and Western Digital (WDC) and Seagate Technology Holdings Plc (STX) are down more than -7%. Also, Micron Technology (MU) is down more than -6%, and Marvel Technology (MRVL) and Intel (INTC) are down more than -5%. In addition, Advanced Micro Devices (AMD) and Lam Research (LRCX) are down more than -4%, and Applied Materials (AMAT) and KLA Corp (KLAC) are down more than -3%.
Elevance Health (ELV) is down more than -10% to lead health insurance stocks lower after Evercore ISI said the company’s updated guidance was “lower” than the beat in the second quarter. Also, Molina Healthcare (MOH) is down more than -4%, and Centene (CNC) is down more than -3%. In addition, UnitedHealth Group (UNH) is down more than -1%.
PayPal Holdings (PYPL) is up more than +17% to lead gainers in the S&P 500 and Nasdaq 100 after Reuters reported Stripe and Advent International have made a joint offer to buy the company for $53 billion, or $60.50 per share.
Karman Holdings (KRMN) is up more than +9% after S&P Dow Jones Indices reported that the company will replace BrightSpring Health Services in the S&P SmallCap 600 effective before the opening of trading on Friday, July 17.
BlackRock (BLK) is up more than +7% after reporting Q2 adjusted EPS of $13.91, well above the consensus of $12.66.
Lionsgate Studios (LION) is up more than +6% after Reuters reported the company is exploring a sale and has attracted takeover interest from Bollore Group.
Cintas (CTAS) is up more than +5% after reporting Q2 revenue of $2.91 billion, better than the consensus of $2.87 billion, and forecasting 2027 revenue of $12.10 billion to $12.25 billion, the midpoint above the consensus of $12.12 billion.
3M Co (MMM) is up more than +3% to lead gainers in the Dow Jones Industrials after announcing a strategic partnership with Microsoft focused on AI data center infrastructure and enterprise transformation.
Pentair Plc (PNR) is down more than -16% to lead losses in the S&P 500 after cutting its full-year adjusted EPS forecast to $4.60 to $4.80 from a previous forecast of $5.30 to $5.40, well below the consensus of $5.33.
Phoenix Education Partners (PXED) is down more than -9% after cutting its 2026 net revenue forecast to $1.02 billion to $1.03 billion from a previous estimate of $1.03 billion to $1.04 billion.
Travelers Cos (TRV) is down more than -2% after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $290.
Earnings Reports(7/15/2026)
Bank of New York Mellon Corp/The (BNY), BlackRock Inc (BLK), Cintas Corp (CTAS), Conagra Brands Inc (CAG), Elevance Health Inc (ELV), First Horizon Corp (FHN), JB Hunt Transport Services Inc (JBHT), Johnson & Johnson (JNJ), M&T Bank Corp (MTB), Morgan Stanley (MS), PNC Financial Services Group Inc (PNC), Progressive Corp/The (PGR), United Airlines Holdings Inc (UAL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Mixed on Favorable Inflation News and Chipmaker Weakness

The S&P 500 Index ($SPX) (SPY) today is up +0.23%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.26%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.31%. September E-mini S&P futures (ESU26) are up +0.27%, and September E-mini Nasdaq futures (NQU26) are up +0.21%.
Stock indexes are moving higher today, with the S&P 500 posting a 1-month high following today’s US economic news, which showed that June producer prices rose less than expected and the July Empire manufacturing survey rose more than expected.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Strength in technology stocks is also positive for the broader market, following strong earnings results from ASML, which offered fresh evidence of the relentless demand for chips needed for the global artificial intelligence buildout. ASML is the only maker of sophisticated lithography machines needed to manufacture advanced semiconductors.
Gains in the broader market are limited today amid weakness in chipmakers. Also, health insurance stocks are under pressure after Elevance Health plunged as its updated guidance fell short of the second-quarter beat.
US MBA mortgage applications fell -2.7% in the week ended July 10, with the purchase mortgage sub-index down -7.3% and the refinancing mortgage sub-index up +3.5%. The average 30-year fixed rate mortgage rose +7 bp to 6.65% from 6.58% in the prior week.
US Jun PPI final demand eased to +5.5% y/y from +6.0% y/y, weaker than expectations of +6.2% y/y. Jun PPI ex food and energy rose +4.7% y/y, weaker than expectations of +5.1% y/y.
The US Jul Empire manufacturing survey of general business conditions rose +9.9 to 15.6, stronger than expectations of 9.2.
Dovish comments today from New York Fed President John Williams were supportive for stocks and bonds when he said, "Inflation is unquestionably too high, but there are encouraging reasons to expect that inflation has peaked and should edge down in coming quarters."
Chinese economic news was mixed for global growth prospects. On the negative side, China's Q2 GDP rose +4.3% y/y, slightly weaker than expectations of +4.4% y/y and the smallest increase in 3.5 years. Also, Jun new home prices fell by -0.15% m/m, marking the 37th consecutive month of declines. On the positive side, China's industrial production rose 5.3% y/y, stronger than the expected 4.6% y/y. Also, Jun retail sales unexpectedly rose +1.0% y/y, stronger than expectations of -0.1% y/y. In addition, the Jun surveyed jobless rate unexpectedly fell -0.1 to 5.0%, showing a stronger labor market than expectations of no change at 5.1%.
On the negative side, WTI crude oil (CLQ26) is up nearly +1%, adding to this week’s +10% surge, as the interim peace deal between the US and Iran has effectively collapsed. The US maintained its naval blockade of Iran and launched another wave of airstrikes on Iran today, the fifth straight day of attacks. President Trump pledged to intensify the bombardment until Iran stops attacking ships in the Strait of Hormuz and agrees to open the waterway. Iran responded with missile and drone attacks against Kuwait.
The outlook for strong Q2 earnings, which will begin this week, is a bullish factor for stocks. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.
The markets are discounting a 10% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.02%. China's Shanghai Composite closed down -0.29%. Japan's Nikkei-225 Stock Average closed up +1.49%.
Interest Rates
September 10-year T-notes (ZNU6) today are up +5 ticks, and the 10-year T-note yield is down -2.6 bp to 4.563%. T-notes recovered from early losses today and moved higher after US Jun producer prices rose less than expected, a dovish factor for Fed policy. T-notes added to their gains today when New York Fed President John Williams said, “there are encouraging reasons to expect that inflation has peaked and should edge down in coming quarters." T-notes initially moved lower on today’s strength in WTI crude oil prices, which boosts inflation expectations and is bearish for T-notes.
European government bond yields are mixed today. The 10-year German bund yield rose to a 1.75-month high of 3.148% and is up +2.4 bp to 3.138%. The 10-year UK gilt yield is down -0.5 bp to 4.972%.
Eurozone May industrial production unexpectedly fell -0.2% m/m, weaker than expectations of a+0.2% m/m increase.
ECB Governing Council member and Bundesbank President Joachim Nagel said, "The development of energy prices is a decisive factor in determining the future inflation outlook, and monetary policy will maintain its vigilant stance."
Swaps are discounting a 7% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
Software stocks are climbing today, recovering some of Tuesday’s sharp losses. Atlassian Corp (TEAM) and Thomson Reuters (TRI) are up more than +4%, and Adobe Systems (ADBE) is up more than +3%. Also, Workday (WDAY) is up more than +2%, and ServiceNow (NOW), Oracle (ORCL), Salesforce (CRM), Autodesk (ADSK), and Microsoft (MSFT) are up more than +1%.
Chipmakers and AI-infrastructure stocks are under pressure today, a negative factor for the broader market. The iShares Semiconductor ETF (SOXX) is down -0.28%. Sandisk (SNDK) is down more than -4% to lead losers in the Nasdaq 100, and Western Digital is down more than -3%. Also, Micron Technology (MU), Seagate Technology Holdings Plc (STX), and Marvel Technology (MRVL) are down more than -2%, and Lam Research (LRCX), Applied Materials (AMAT), and KLA Corp (KLAC) are down more than -1%.
Elevance Health (ELV) is down more than -8% to lead health insurance stocks lower after Evercore ISI said the company’s updated guidance was “lower” than the beat in the second quarter. Also, Centene (CNC) and Molina Healthcare (MOH) are down more than -3%, and Humana (HUM), Cardinal Health (CAH), and Cigna Group (CI) are down more than -1%.
PayPal Holdings (PYPL) is up more than +15% to lead gainers in the S&P 500 after Reuters reported Stripe and Advent International have made a joint offer to buy the company for $53 billion, or $60.50 per share.
BlackRock (BLK) is up more than +7% after reporting Q2 adjusted EPS of $13.91, well above the consensus of $12.66.
Karman Holdings (KRMN) is up more than +7% after S&P Dow Jones Indices reported that the company will replace BrightSpring Health Services in the S&P SmallCap 600 effective before the opening of trading on Friday, July 17.
Lionsgate Studios (LION) is up more than +6% after Reuters reported the company is exploring a sale and has attracted takeover interest from Bollore Group.
Cintas (CTAS) is up more than +5% after reporting Q2 revenue of $2.91 billion, better than the consensus of $2.87 billion, and forecasting 2027 revenue of $12.10 billion to $12.25 billion, the midpoint above the consensus of $12.12 billion.
3M Co (MMM) is up more than +3% to lead gainers in the Dow Jones Industrials after announcing a strategic partnership with Microsoft focused on AI data center infrastructure and enterprise transformation.
Pentair Plc (PNR) is down more than -17% to lead losses in the S&P 500 after cutting its full-year adjusted EPS forecast to $4.60 to $4.80 from a previous forecast of $5.30 to $5.40, well below the consensus of $5.33.
Phoenix Education Partners (PXED) is down more than -11% after cutting its 2026 net revenue forecast to $1.02 billion to $1.03 billion from a previous estimate of $1.03 billion to $1.04 billion.
Travelers Cos (TRV) is down more than -2% to lead losers in the Dow Jones Industrials after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $290.
Earnings Reports(7/15/2026)
Bank of New York Mellon Corp/The (BNY), BlackRock Inc (BLK), Cintas Corp (CTAS), Conagra Brands Inc (CAG), Elevance Health Inc (ELV), First Horizon Corp (FHN), JB Hunt Transport Services Inc (JBHT), Johnson & Johnson (JNJ), M&T Bank Corp (MTB), Morgan Stanley (MS), PNC Financial Services Group Inc (PNC), Progressive Corp/The (PGR), United Airlines Holdings Inc (UAL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Supported By Favorable Inflation News

Tuesday, July 14, 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 Chevron Corp. (CVX), TotalEnergies SE (TTE) and Robinhood Markets, Inc. (HOOD), as well as two micro-cap stocks Oil-Dri Corporation of America (ODC) and Aeries Technology, Inc (AERT). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> June CPI Goes Negative on Low Oil Prices, Banks Report for Q2
Today's Featured Research Reports
Shares of Chevron have gained +26.2% over the past year against the Zacks Oil and Gas - Integrated - International industry’s gain of +34.4%. The company remains well positioned for long-term growth, supported by its integrated business model, leverage to favorable crude prices, the Hess acquisition, disciplined capital allocation, reaffirmed production guidance, stronger refining operations, resilient LNG business, AI-driven power expansion through Project Kilby, and robust cash flow prospects from Tengizchevroil.
However, the company faces regulatory scrutiny, geopolitical uncertainty, operational disruptions in key international assets, a premium valuation, a Permian strategy prioritizing free cash flow over faster production growth, and significant capital spending that could pressure near-term cash flow and raise execution risks if commodity prices weaken. Hence, investors are advised to wait for a better entry point.
(You can read the full research report on Chevron here >>>)
TotalEnergies’ shares have gained +33.3% over the past year against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +52.3%. The company’s production volume was impacted by the Middle East crisis, but its production outside the region and higher oil prices offset the impact. With tensions easing, the company will wait for conditions to stabilize before resuming operations in the region.
TotalEnergies is gaining from contributions coming from startups, acquired assets, well-spread LNG assets and assets located in the new hydrocarbon-producing regions. The company aims to generate 15-20% of sales from low-carbon business by 2040 and reduce emissions in the process.
Yet, TotalEnergies operates multiple assets globally, and in some regions, production might be impacted due to security concerns. It remains exposed to acquisition-related risks as these assets contribute a sizable volume to production.
(You can read the full research report on TotalEnergies here >>>)
Shares of Robinhood have gained +11.8% over the past year against the Zacks Financial - Investment Bank industry’s gain of +29.3%. The company is broadening beyond trading into a full retail finance platform, with banking, retirement, advisor tools, international access, tokenized assets, prediction markets and AI-enabled trading widening the path beyond U.S. retail trading cycles.
Active equities, options and crypto engagement, growing platform assets and controlled infrastructure such as Robinhood Chain and Rothera could deepen monetization and strengthen product economics. The company’s liquidity and repurchase authorization provide flexibility, but crypto trading remains cyclical.
Newer offerings like tokenized stocks, DeFi lending, event contracts and leveraged global products carry regulatory, liquidity and cybersecurity risk. Heavy spending, stock-based compensation, possible dilution and rich valuation cap upside.
(You can read the full research report on Robinhood here >>>)
Oil-Dri’s shares have outperformed the Zacks Chemical - Diversified industry over the past six months (+94.8% vs. +5.9%). This microcap company with a market capitalization of $1.54 billion has its investment case supported by diversified demand in Fluids Purification across food, renewable fuel and refining applications, reducing reliance on any single end market.
Growth is also being driven by an expanding portfolio of premium and specialty cat litter products, alongside improving Agriculture and Animal Health businesses, strengthening revenue diversification. Vertical integration, manufacturing investments and a healthy balance sheet support operational reliability, capacity expansion and continued shareholder returns.
However, key risks include persistent cost inflation and rising depreciation that may pressure margins, heavy capital requirements, competitive pricing in cat litter, uneven profitability in the B2B segment, customer concentration that can create revenue volatility, and the limited contribution of foreign operations to overall growth and earnings.
(You can read the full research report on Oil-Dri here >>>)
Shares of Aeries Technology have outperformed the Zacks Technology Services industry over the past six months (+60.5% vs. -7.1%). This microcap company with a market capitalization of $37.71 million is well-positioned to benefit from the rapidly expanding GCC market, where enterprise adoption and provider-supported GCC services are expected to grow at double-digit rates over the next several years.
Aeries Technology’s differentiated end-to-end platform spans strategy, center setup, operations, optimization and AI-led transformation, enabling deeper client relationships and multiple revenue opportunities across the GCC lifecycle. The company's specialization in serving private equity-backed portfolio companies creates repeat business opportunities. Recent customer wins, the launch of its proprietary A1 GCC platform and a healthy sales pipeline further support growth prospects.
However, risks include customer concentration following recent contract losses, liquidity constraints, intensifying competition and reliance on offshore delivery operations. The stock trades at a discount to industry peers on EV/sales.
(You can read the full research report on Aeries Technology here >>>)
Other noteworthy reports we are featuring today include Centene Corp. (CNC), Twilio Inc. (TWLO) and Akamai Technologies, Inc. (AKAM).
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
Centene (CNC) Rides on Growing Premiums, Strategic Buyouts
Per the Zacks analyst, solid Medicaid business, contract wins and acquisitions continue to drive its premiums and subsequently, revenues. Mergers and acquisitions enhance capabilities.
Twilio (TWLO) Banks on Growing Active Customer Accounts
Per the Zacks analyst, Twilio's continued focus on introducing products as well as its go-to-market sales strategy is helping it grow its active customer accounts, which is driving top-line growth.
Akamai (AKAM) Rides on Solid Demand in Multiple Verticals
Per the Zacks analyst, strong demand for guardicore segmentation and API security solutions, combined with solid momentum in cloud infrastructure services, will likely drive Akamai's top line.
Invitation Homes (INVH) Gain on Scale, Growth Efforts Amid Supply Risk
Per the Zacks analyst, Invitation Homes gain from its scaled rental portfolio supported by strong demand, builder partnerships growth and technology initiatives. Yet supply pressures and expenses ail.
Broadridge (BR) Gains From Recurring Revenue Model, Amid High Rivalry
Per the Zacks analyst, a robust business model, backed by higher recurring fee revenues, boosts Broadridge's top line. High competition from other players is an overhang.
Service Center Unit Aids Applied Industrial (AIT), Costs Ail
Per the Zacks analyst, Applied Industrial's Service Center Based Distribution segment is driven by increase in demand for technical MRO services. However, high costs remain concerning for the company.
Valmont (VMI) Gains on Productivity Initiatives & Pricing Strength
Per the Zacks analyst, VMI benefits from reduced corporate expenses and cost savings resulting from restructuring efforts. Moreover, favorable pricing trends from supply constraints boost outlook.
New Upgrades
The New York Times (NYT) Gains From Digital & Multi-Platform Content
Per the Zacks analyst, The New York Times' technological advancements deepen audience engagement and extend reach. It has a multifaceted strategy to boost revenues, with its pay-and-read model.
AtaiBeckley (ATAI) Banks on Pipeline Targeting Mental Health Disorders
Per the Zacks analyst, AtaiBeckley's focus on developing mental health treatments, driven by promising pipeline progress, positions it for meaningful clinical value creation in the long term.
Strong Nursing Demand & Business Efforts aid American Public (APEI)
Per the Zacks analyst, American Public is gaining from robust demand in nursing and military programs, resulting in enrollment growth, alongside effective institutional combination efforts.
New Downgrades
Weak Commodity Prices & Rising Costs to Hurt Range Resources (RRC)
Per the Zacks analyst, commodity sensitivity, uncertain demand timing, rising costs, execution risks and weaker earnings estimates could limit RRC's cash flow and shareholder returns ahead.
Tractor Supply (TSCO) Faces Margin Pressure Amid Tariff Headwinds
Per the Zacks analyst, Tractor Supply faces soft rural demand, tariff-led cost pressure and cautious discretionary spending while high operating costs and earnings pressure cloud its near-term outlook
Baxter (BAX) Faces Margin Pressure Despite Core Business Growth
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Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	CNC	Industry	CNC	Industry	Volume, $
Yesterday 63.0 - 64.6	9.15	17.97	5.19	1.33	124.86M
Week 62.9 - 67.6	5.12	12.98	5.57	3.80	824.55M
Month 62.9 - 69.4	7.58	19.06	10.64	6.45	3.71B
3 Months 41.7 - 69.4	67.69	44.57	21.47	14.93	14.38B
6 Months 31.6 - 69.4	59.23	55.19	33.61	21.68	24.94B
Year 25.1 - 69.4	158.29	48.75	49.23	37.67	59.86B
3 years 25.1 - 81.4	-0.26	33.88	78.31	69.50	148.51B
5 years 25.1 - 98.5	1.08	46.38	90.12	98.14	230.66B
All time 3.3 - 98.5	1,548.85	64.81	—	—	200.36B

Centene Corporation

Price and volatility history

Risk ratios