Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general purpose engines, lawn mowers, generators, water pumps, brush cutters, tillers, outboard marine engines, and snow throwers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.

Honda appears undervalued on valuation multiples, but the quality of profitability and the balance sheet structure do not justify an aggressive upward revision. P/E of 6.76, P/S of 0.37, and P/B of 0.52 are noticeably below the industry median, which typically supports investment appeal and limits the risk of a sharp re-rating. At the same time, P/FCF is zero, which means free cash flow cannot be used to confirm a cheap valuation and reduces confidence in multiple-driven upside. Returns on equity and assets are weaker than the industry: ROE of 8.06, ROA of 3.21, and ROI of 5.08 are materially below the median, and return on tangible equity also lags, indicating more modest business efficiency. Operating margin of 6.30 and gross margin of 21.47 are also below industry benchmarks, although net margin of 6.13 looks slightly better than the median and points to acceptable bottom-line profitability. Earnings momentum is generally positive: revenue, operating profit, and net profit increased in the latest period, supporting the view of the company as a resilient large-scale manufacturer. However, EBITDA is significantly below previous levels, signaling that operating cash flow quality is not improving in sync with earnings growth. Leverage is moderate, but debt/equity is above the median and long-term debt has increased, so the balance sheet cannot be called risk-free. Liquidity is generally sound: the quick ratio is above 1, but the current ratio is slightly below the industry median, leaving a limited buffer. Dividend yield was absent in the latest period, whereas it was positive previously, so the dividend factor does not currently support a re-rating. Overall, the fundamentals justify a cautious downward adjustment of the target rather than an increase, because the cheap valuation is already partly offset by weak efficiency and a moderately deteriorating debt profile.

Honda Motor Company, Ltd.

Сильный индекс, значительно вырос. Быки крепко уверены в своих позициях.

Strong index, significantly up. The bulls are very confident in their positions.

Средний индекс, без изменений. Рынок не поддерживает быков.

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

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

Honda looks cheap on P/E, P/S, and P/B, but weaker than the industry on ROE, ROA, and margin; earnings growth supports the valuation, however debt and the absence of dividends limit...

The Current State of the FIRE Movement

General Motors Company GM has delivered an impressive performance over the past year. Its shares have gained 43.3%, outperforming the 1.3% rise of the Automotive - Domestic industry and the 17.6% rise of the Zacks S&P 500 composite.
GM’s revenues are anticipated to increase 0.35% and 2.14% year over year in 2026 and 2027, respectively. Earnings are estimated to rise 26.4% in 2026 and 10.14% in 2027. The company has an estimated long-term (three- to five-year) earnings per share (EPS) growth rate of 13.3%.
Factors That Augur Well for GM
General Motors’ new user interface for its 2027 Chevrolet Silverado and GMC Sierra pickup trucks is expected to enhance the overall driving experience through intuitive layouts, advanced 3D visualization and personalized controls. The integration of trailering, off-road and Super Cruise features, along with improved Apple CarPlay and Android Auto functionality, could further strengthen the appeal of GM’s high-volume pickup lineup. The company’s focus on software-driven capabilities and seamless vehicle-mobile integration also highlights its efforts to differentiate its trucks through advanced technology and connected features.
GM's long history of safety innovation highlights its sustained focus on developing technologies aimed at improving vehicle safety and reducing crash-related risks. From the electric self-starter, crash testing and energy-absorbing steering columns to airbags, OnStar, Rear Seat Reminder and Buckle to Drive, GM has introduced several safety features that have influenced the broader automotive industry. The company’s efforts to make key active safety technologies standard across most of its vehicles further underscore its commitment to enhancing safety while strengthening the value proposition of its lineup.
The company’s $250,000 grant to the College for Creative Studies and its support for Detroit’s arts community highlight its commitment to nurturing future design talent and strengthening its ties with the city. The Art + Cars exhibit and long-term loan of artwork to the Detroit Institute of Arts further reinforce GM’s focus on design, creativity and community engagement, which could support its brand image and help foster the next generation of automotive designers.
General Motors’ launch of the Stars, Stripes and Skilled Trades initiative highlights its efforts to strengthen the skilled workforce while supporting veterans and military families. By providing grants ranging from $100,000 to $500,000 to workforce nonprofits and expanding pathways into manufacturing and skilled-trade careers, the program could help GM build a stronger talent pipeline while reinforcing its presence in communities near its facilities.
Moreover, in the second quarter of 2026, GM delivered solid operating performance, with revenues rising 1.9% year over year to $48.0 billion and adjusted EBIT increasing 29.8% to $3.9 billion. Adjusted EPS grew 41.3% to $3.57, while adjusted automotive free cash flow surged 78% to $5.0 billion. The improved performance supported GM’s decision to raise its full-year 2026 adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion, highlighting stronger operating momentum.
GM: Key Risks to Watch
General Motors is facing significant pressure from macroeconomic volatility, which is driving up expenses and weighing on its bottom line. In the second quarter of 2026, total costs and expenses rose to $46.6 billion from $45.0 billion a year ago, while net income declined 31.1% to $1.3 billion. The elevated cost base could continue to pressure GM’s profitability and limit margin expansion going forward.
General Motors’s Zacks Rank & Stocks to Consider
GM currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks for investors’ consideration are Honda Motor Co. HMC and Fox Factory Holdings FOXF.
HMC currently sports a Zacks Rank #1. The company has an expected earnings growth rate of more than 100% and 62.6% for 2026 and 2027, respectively.
FOXF currently sports a Zacks Rank of 1. The company has an expected earnings growth rate of 44.3% and 21.3% for 2026 and 2027, respectively.
The company has an encouraging earnings surprise history, as it has topped the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 53.8%.
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Reasons Why You Should Hold General Motors Stock in Your Portfolio

Ford Motor Company F and Honda Motor Co., Ltd. HMC are prominent names in the global mobility industry. Both automakers have built long-standing legacies through mass-market vehicle production, engineering innovation and expanding global operations. Both companies have diversified their revenue streams to adapt to the rapidly evolving automotive landscape.
Year to date, Ford stock has gained 1.8% compared with Honda’s 8.9% return.
A closer look at the companies’ fundamentals, growth catalysts and key risks can provide insight into the factors shaping their investment prospects.
The Case for Ford Stock
Ford Pro remains the company’s main earnings engine, supported by commercial vehicle leadership and recurring software and physical services. Paid Ford Pro Intelligence subscriptions exceeded 900,000 in the second quarter of 2026, while total company paid subscriptions rose about 50% to 1.6 million.
Ford’s truck, utility and hybrid lineup provides flexibility as powertrain demand evolves. The Maverick Hybrid achieved record first-half 2026 sales, while the F-150 Hybrid led the full-size truck category. Ford plans to extend hybrids across its lineup. The Universal Electric Vehicle platform remains on track for customer deliveries in 2027, with the first product starting near $30,000.
Ford Energy adds a new revenue stream beyond vehicle sales by applying Ford’s battery manufacturing, service and monitoring capabilities to energy storage. The agreement with EDF Power Solutions North America provides an early commercial pathway and supports access to a broad, recurring customer base. Ford expects to reach 20 gigawatt-hours of annual capacity by late 2027 and is already producing prototype cells in Michigan.
However, Ford Model e remains a drag while the company funds next-generation electric vehicles and energy storage. The segment lost $919 million in the second quarter of 2026, although this was its third consecutive quarter of year-over-year EBIT improvement. The company now expects a full-year 2026 loss of about $4 billion, including roughly $1 billion of incremental investment in the Universal EV platform and Ford Energy.
Ford expects 2026 capital expenditures of $9.5-$10.5 billion for trucks, the Universal EV platform, Ford Energy, software and manufacturing changes. Adjusted free cash flow was only $0.2 billion in the first half, despite $6 billion in adjusted EBIT. Although full-year guidance rose to $6-$7 billion, heavy investment can limit flexibility if operating conditions weaken.
Ford’s outlook assumes a U.S. SAAR of 16-16.5 million vehicles and excludes a material U.S. downturn or a major escalation in the Middle East. Either event could reduce vehicle demand, disrupt logistics and alter commodity costs, which could hamper both top-line and bottom-line growth.
The Zacks Consensus Estimate for Ford’s 2026 and 2027 EPS has moved up 20 cents and 9 cents, respectively, in the past 60 days.
The Case for Honda Stock
HEVs remain Honda’s core growth area over the next several years, especially in North America, where demand and profitability compare favorably with EVs. Fiscal 2027 first-quarter HEV retail sales rose to 249,000 units from 225,000 a year earlier, while sales excluding China increased to 239,000 from 206,000. Existing mixed-production lines allow Honda to redirect capacity from canceled EV programs toward HEVs without major incremental investment. The company is also developing larger HEV models while improving cost and performance in mid-size vehicles.
Honda’s motorcycle business is supported by broad demand across large emerging markets. Higher sales volumes in India and Brazil were key drivers, helping offset weakness in other businesses. Honda maintained its fiscal 2027 motorcycle sales forecast at 22.8 million units, up from 22.1 million recorded in fiscal 2026. The segment’s scale and high profitability give Honda a recurring source of earnings while the automobile business absorbs restructuring and electrification costs.
Honda’s Financial Services business adds another recurring profit stream by providing retail loans and leases that support automobile sales. The segment reduces Honda’s dependence on vehicle manufacturing profits and provides greater stability when automobile margins fluctuate.
The Zacks Consensus Estimate for Honda’s fiscal 2027 and 2028 EPS has moved up 20 cents and 54 cents, respectively, in the past 30 days.
Conclusion
Honda’s strong hybrid momentum provides exposure to growing electrified-vehicle demand while allowing the company to leverage existing production infrastructure and limit incremental investment. Its highly profitable motorcycle business, particularly in key emerging markets, adds another significant source of earnings diversification. Honda’s Financial Services business further supports recurring income and helps cushion fluctuations in automotive profitability.
In contrast, Ford continues to face substantial costs associated with its EV transition, with Model e expected to post a sizable loss in 2026. Heavy capital requirements and exposure to potential U.S. demand weakness could also constrain Ford’s financial flexibility.
Overall, Honda appears better positioned as an investment option than Ford, supported by a more diversified earnings profile and resilient growth opportunities. Honda sports a Zacks Rank #1 (Strong Buy), while Ford carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Ford vs. Honda: Which Legacy Automaker is a Better Buy Now?

A gradual shift in the automotive narrative has been witnessed recently. Over the past couple of years, changes in consumer preference, a lack of adequate charging infrastructure and unfavorable policy shifts have rewritten the script of the electric vehicle (EV) revolution, which was once touted as a fast track toward total auto market dominance, particularly in the United States.
Instead of an immediate leap to pure battery electric vehicles (BEVs), mainstream car buyers are lately embracing a pragmatic compromise: gas-electric hybrid vehicles.
To this end, renowned automotive analyst John Murphy has recently predicted hybrids to account for 34% of the U.S. market by 2030, up from just over 18% in 2026 (as cited in CNBC).
This surge should redirect investor attention from speculative EV startups to established automakers reaping hybrid profits — and the automotive Exchange-Traded Funds (ETFs) holding them.
Before identifying these specialized funds, we provide an in-depth look at how this fundamental powertrain shift is taking center stage, the key stocks involved and why automotive ETFs could benefit from a potential shift in investor sentiment.
How Hybrid Cars Are Taking Center Stage
Consumers are choosing hybrids for practical reasons: they offer significant fuel efficiency and don’t bring with them the charging infrastructure headaches when compared to pure EVs.
Another significant catalyst driving the increased adoption of hybrid vehicles is the expiration of the federal $7,500 EV tax credit in September 2025. The removal of the subsidy effectively raised the cost of pure EVs by thousands of dollars overnight, drastically stalling their sales growth.
As per a report published by Forbes in December 2025, the average cost of an EV is $55,000-$59,000. Meanwhile, hybrid pricing has dropped considerably, with prominent automakers like Toyota, Honda, Ford, Hyundai, and Kia having pushed hybrid variants into their most popular mainstream models, often at a modest upcharge of $1,500-$2,000.
Longevity also matters. Hybrids have been on the road for over 25 years, while battery packs usually last 15 to 20 years.
All these factors have been fueling the shift toward hybrid takeover and the most compelling evidence of it lies in the sales data. According to the U.S. Energy Information Administration (EIA), hybrid electric vehicles reached a record 16% of light-duty vehicle sales in the second quarter of 2026, while battery electric vehicles (BEVs) actually saw their market share decline to 6% from 7% the previous year.
Automakers Dominating Hybrids
Automakers dominating the surging U.S. hybrid market are Toyota, Honda and Hyundai Motor Group, which currently control 86% of the market, according to Baum & Associates’ data, as cited in CNBC.
In the first half of 2026, Toyota TM sold over 600,000 hybrids in the United States, capturing 50% market share.
Honda’s HMC hybrids now account for 31% of American Honda's total sales. The company set a new U.S. hybrid sales record in the first half of 2026.
Hyundai Motor Group has edged past Honda for the number two spot, with broad hybrid rollouts across SUVs and large vehicles providing growth that pure-EV makers lack.
Other automakers like General Motors GM, although currently making very few hybrid cars for the U.S. market, plan to reintroduce plug-in hybrid electric vehicles (PHEVs) by 2027.
Outlook: Why Hybrids Boost the Automotive ETF Narrative
The hybrid surge represents a structural realignment, not a temporary spike. As EV tax credits expired and range anxiety persists, hybrids offer an affordable, scalable solution.
This shift to hybrid vehicles benefits automotive ETFs holding traditional automakers. Broad auto sector ETFs should capture the high revenues generated by legacy giants like TM and GM while diluting single-stock exposure and insulating portfolios from pure-play EV volatility.
With hybrids expected to capture 34% of market share by 2030, established giants with extensive hybrid portfolios should become primary growth engines for automotive ETFs.
Automotive ETFs in Spotlight
As hybrid profitability is expected to boost balance sheets, the following ETFs, heavily weighted in hybrid-focused auto manufacturers, are positioned for sustained cash-flow strength and thus deserve a spotlight:
Global X Autonomous & Electric Vehicles ETF DRIV
This fund, with net assets worth $359.2 million, offers exposure to companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt. Microsoft holds the first spot in this fund, with 3.95% weightage, while TM holds the seventh spot with 2.63% weightage. GM holds the ninth spot with 1.85% weightage.
DRIV has gained 12.3% year to date and charges 68 basis points (bps) in fees.
First Trust S-Network Future Vehicles & Technology ETF CARZ
This fund, with net assets worth $46.7 million, offers exposure to future vehicles companies and technology companies listed on a recognized global securities exchange and engaged in the electric and autonomous vehicle manufacturing; enabling materials; or enabling technologies sectors. Microsoft holds the first spot in this fund, with 6.21% weightage. TM and GM hold more than 0.7% weightage in this fund, ranking within the top 20 spots in CARZ.
The fund has rallied 33% year to date and charges 70 bps in fees.
State Street SPDR S&P Kensho Smart Mobility ETF HAIL
This fund, with assets under management (AUM) worth $18 million, offers exposure to companies whose products and services are driving innovation behind smart transportation, which includes the areas of autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications, and advanced transportation tracking and transport optimization systems. Via Transportation holds the first spot in this fund, with 2.87% weightage, while HMC holds the second spot with 1.97% weightage. GM holds the fourth spot with 1.74% weightage.
HAIL has risen 3.7% year to date and charges 45 bps in fees.
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Automotive ETFs in Spotlight as Hybrid Cars Take Center Stage

For Immediate Release
Chicago, IL – August 28, 2026 – Stocks in this week’s Herbalife Ltd. HLF, Honda Motor HMC, Marathon Petroleum Corp. MPC, Halozyme Therapeutics HALO and Genworth Financial GNW.
5 Value Stocks to Buy Right Now as Inflation Remains Sticky
Wall Street is entering a period of renewed uncertainty as sticky inflation complicates the Federal Reserve’s stance on interest rates. U.S. inflation remains well above the central bank’s 2% target, while the prolonged conflict in the Middle East continues to create risks for energy prices and the broader economy.
With the next Fed decision approaching and September historically proving a challenging month for stocks, investors may face greater volatility ahead. This backdrop makes chasing expensive growth stocks less appealing.
Instead, investors may benefit from focusing on companies whose share prices do not fully reflect their underlying fundamentals. Value investing could offer a sensible approach in this environment, as financially solid businesses trading at reasonable valuations may provide a stronger margin of safety while giving investors room to benefit if market sentiment improves.
Value investors can consider stocks such as Herbalife Ltd., Honda Motor, Marathon Petroleum Corp. Halozyme Therapeutics and Genworth Financial, which have high earnings yield.
Understanding Earnings Yield Metric
One metric widely used by value investors to identify potentially undervalued stocks is earnings yield. Calculated by dividing a company’s annual earnings per share by its current stock price, earnings yield indicates the amount of earnings generated for every dollar invested in a stock. Generally, a higher earnings yield suggests a stock may be undervalued relative to its earnings potential, while a lower earnings yield can indicate a richer valuation.
Earnings yield also provides a useful way to compare stocks with fixed-income investments such as bonds. When a stock’s earnings yield exceeds prevailing bond yields, it may offer a more attractive return potential, making it a valuable tool for investors searching for opportunities in an uncertain market.
Here we have discussed five of the 35 stocks that qualified the screening:
Herbalife is a global nutrition company focused on helping consumers improve their health and wellness through science-based products.The Zacks Consensus Estimate for HLF’s 2026 and 2027 EPS implies year-over-year growth of 26% and 12%, respectively. While EPS estimates for the current year have remained stable over the past 30 days, they have moved up by 18 cents for 2027 over the same timeframe. Herbalife currently carries a Zacks Rank #2 and has a Value Score of A.
Hondais a leading manufacturer of automobiles and the largest producer of motorcycles in the world.The Zacks Consensus Estimate for HMC’s fiscal 2027 and 2028 EPS implies year-over-year growth of 204% and 62%, respectively. EPS estimates for the current year and the next have moved up by $1.27 and 67 cents, respectively, over the past 30 days. Honda currently sports a Zacks Rank #1 and has a Value Score of A.
Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The Zacks Consensus Estimate for MPC’s 2026 EPS implies year-over-year growth of 336%. EPS estimates for the current year and the next have moved up by $3.47 and $2.29, respectively, over the past 30 days. Marathon Petroleum currently carries a Zacks Rank #2 and has a Value Score of A.
Halozyme is a biopharmaceutical company focused on the development and commercialization of novel treatments for oncology indications by targeting the tumor microenvironment. The Zacks Consensus Estimate for HALO’s 2026 and 2027 EPS implies year-over-year growth of 97% and 18%, respectively. EPS estimates for the current and next year have moved up by 23 cents and 9 cents, respectively, over the past 30 days. Halozyme currently carries a Zacks Rank #2 and has a Value Score of B.
Genworth, through its principal insurance subsidiaries, offers mortgage and long-term care insurance products. The Zacks Consensus Estimate for GNW’s 2026 and 2027 EPS implies year-over-year growth of 214% and 5%, respectively. EPS estimates for the current and next year have moved up by 66 cents and 69 cents, respectively, over the past 60 days. Genworth currently carries a Zacks Rank #2 and has a Value Score of A.
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https://www.zacks.com/stock/news/2981136/5-value-stocks-to-buy-right-now-as-inflation-remains-sticky
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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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This article originally published on Zacks Investment Research (zacks.com).

Zacks.com featured highlights Herbalife, Honda Motor, Marathon, Halozyme and Genworth

Tuesday, August 18, 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 Visa Inc. (V), Lam Research Corp. (LRCX) and Caterpillar Inc. (CAT), as well as two micro-cap stocks Q.E.P. Co., Inc. (QEPC) and Altigen Communications, Inc. (ATGN). 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 >>> New Reports Show Cooling Economy, Bond Yields Climb
Today's Featured Research Reports
Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the year-to-date period (+2.9% vs. -6.8%). The company’s third quarter earnings beat estimates. Its scale and brand strength keep it at the center of global digital payments, with growth still driven by higher payment volumes, cross-border activity, and increasing transaction counts.
Fiscal Q3 2026 results showed broad momentum across consumer payments, commercial, and money movement solutions, and value-added services. Investments in agentic commerce and stablecoin settlement, alongside targeted acquisitions and disciplined capital returns, should continue to extend its network value over time.
However, client incentives and marketing spend are rising while adjusted net margin decreased to 54.1% in fiscal Q3 2026. Cash activity remains uneven across regions, valuation is still rich and regulatory and litigation risks remain elevated. As such, we have a Neutral recommendation on the stock.
(You can read the full research report on Visa here >>>)
Shares of Lam Research have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+92.2% vs. +36.7%). The company is benefiting from AI-driven investment in memory, leading-edge foundry and advanced packaging. Rising process complexity is increasing demand for etch and deposition tools, while NAND conversions, advanced DRAM and larger packages expand its served market.
Customer Support is scaling through upgrades, high utilization and early adoption of Equipment Intelligence and Dextro services. Record fiscal 2026 results, higher margin targets and a sizable September-quarter outlook reinforce execution. Cash generation and capital returns add support.
However, equipment spending remains cyclical, China exposure is volatile, and export controls can disrupt demand. Competition, capacity limits and international exposure also remain risks. Overall, structural AI demand and rising technology content support the Outperform view.
(You can read the full research report on Lam Research here >>>)
Caterpillar’s shares have outperformed the Zacks Manufacturing - Construction and Mining industry over the year-to-date period (+50.8% vs. +47.4%). The company’s outlook is supported by broad demand across construction, mining and power markets, with rising sales to users and a record backlog improving revenue visibility. Order momentum remains strong across all primary segments. Power & Energy is benefiting from data-center power needs and healthy oil and gas activity, while capacity additions expand the company’s ability to serve multi-year demand.
The Construction Industries segment remains supported by infrastructure, rental fleet investment and large projects. Mining demand is aided by elevated fleet age, commodity investment and technology adoption.
Higher services revenues and cash generation add resilience and support shareholder returns. While tariffs remain a headwind, improved volume, pricing and management’s higher full-year outlook support an Outperform view.
(You can read the full research report on Caterpillar here >>>)
Shares of Q.E.P have outperformed the Zacks Tools - Handheld industry over the year-to-date period (+33.3% vs. +20.9%). This microcap company with a market capitalization of $157.78 million has an investment case underpinned by strong liquidity, minimal leverage, healthy cash generation and resilient core-channel demand, providing flexibility to fund operations, invest selectively and return capital to shareholders. Stable gross profitability and reliable fulfillment further support the durability of the business despite subdued home-improvement spending.
However, tariff and inflation pressures, rising operating costs and weak end-market demand could constrain earnings recovery. High customer concentration and direct-sourcing competition also create meaningful structural risks, while covenant compliance and asbestos litigation remain additional uncertainties.
The current valuation suggests investors are pricing in operational resilience and earnings stability, leaving limited room for upside without a meaningful improvement in growth.
(You can read the full research report on Q.E.P here >>>)
Altigen’s shares have gained +29.1% over the year-to-date period against the Zacks Communication - Components industry’s gain of +108.1%. This microcap company with a market capitalization of $14.15 million has seen its cloud transition gaining momentum as new cloud revenues have begun exceeding legacy churn, supported by its largest-ever cloud customer, larger enterprise wins and an expanding AI portfolio.
CoreInteract, CoreEngage and CoreInsights broaden its addressable market and create cross-selling opportunities, while the Fiserv relationship offers a scalable channel into financial services. Its installed MAXCloud and MaxCS base also provides a lower-friction path for cloud migrations and AI adoption.
However, the company's fiscal third-quarter revenues fell 14.2%, margins compressed, and customer concentration remained high at 74% for the top five customers and resellers. Rising development spending and impairment risk add uncertainty. At 0.86X EV/sales, valuation remains below industry levels and historical medians.
(You can read the full research report on Altigen here >>>)
Other noteworthy reports we are featuring today include The Allstate Corp. (ALL), Honda Motor Co., Ltd. (HMC) and Insmed Inc. (INSM).
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
Record Backlog & Improving End-Market Demand Aid Caterpillar (CAT)
Featured Reports
Insmed (INSM) Rides on Sales Uptake for Bronchiectasis Drug
The Zacks Analyst believes the demand for Insmed's Brinsupri, the first treatment for non-CF bronchiectasis, is strong. The drug is expected to achieve blockbuster status in 2026.
SoFi Technologies (SOFI) Gains From Member Growth Amid Credit Risks
Per the Zacks analyst, SoFi Technologies gains from deposit-led funding, broader product adoption and fee-based revenues. Yet, reliance on personal loans and weak tech-platform economics raise risks.
Solid Originations Aid Ally Financial's (ALLY) Top Line Amid Cost Woes
Per the Zacks analyst, strong originations and balance sheet optimization will support Ally Financial's net financing revenues. Product launches and focus on core operations will elevate costs.
Record Backlog, Higher Deliveries Support Growth at Embraer (EMBJ)
Per the Zacks analyst, Embraer benefits from a record backlog supported by strong demand across markets. Higher aircraft deliveries will also boost its growth.
Scaled User Base Drives Duolingo (DUOL) Amid Margin Compression
Per the Zacks analyst, Duolingo's scale and rapid product iteration underpin long-term optionality and ensure stability. Advertising costs and broader AI rollout pressure the margin.
V.F. Corporation's (VFC) Transformation Advances Despite Vans Woes
Per the Zacks analys, V.F. Corporation's raised fiscal 2027 outlook reflects stronger Outdoor momentum, cost savings and balance-sheet progress, though Vans weakness remains a key risk.
BlackBerry (BB) Buoyed by QNX & Secure Comms Strength, Healthy Margins
Per the Zacks analyst, continued design wins across the QNX and Secure Communications divisions cushion BlackBerry's top-line. Strong revenue and cost control drive higher profit margins.
New Upgrades
Allstate (ALL) Rides On Solid Protection Services Business
Per the Zacks analyst, Allstate's expanding Protection Services business offers diversification advantages that continues to support the company's top-line growth.
Hybrid Demand, Financial Services Sales Boost Honda's (HMC) Prospects
Per the Zacks analyst, HEVs remain Honda's core growth area over the next several years, especially in North America. Financial Services business also supports growth.
Inspire Medical (INSP) Rides on Clinical Gains, Market Expansion
Per the Zacks analyst, reimbursement recovery, clinical evidence, expanding patient access and a large underpenetrated U.S. market is supporting Inspire Medical's growth outlook.
New Downgrades
California Resources (CRC) Faces Commodity Headwinds
The Zacks analyst believes that California Resources faces earnings volatility from commodity swings, while falling 2026 EPS estimates and higher costs could pressure returns.
Margin Compression in China, Weakness in Europe to Ail Adient (ADNT)
Per the Zacks analyst, revenue growth in China is not likely to translate into an increase in profitability, resulting in margin compression. Volume weakness in Europe also remains a concern.
Caesars Entertainment (CZR) Faces Las Vegas and Margin Headwinds
Per the Zacks analyst, softer Las Vegas visitation, hotel rates and table play, along with weaker Digital margins, continue to weigh on Caesars Entertainment's prospects.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum 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
This article originally published on Zacks Investment Research (zacks.com).

Top Analyst Reports for Visa, Lam Research & Caterpillar

Here are three stocks with buy rank and strong income characteristics for investors to consider today, August 18th:
CION Investment Corporation CION: This business development company which primarily provides senior secured loans to U.S. middle-market companies, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.2% over the last 60 days.
CION Investment Corporation Price and Consensus
This Zacks Rank #1 (Strong Buy) company has a dividend yield of 13.8%, compared with the industry average of 10.7%.
CION Investment Corporation Dividend Yield (TTM)
Millicom International Cellular TIGO: This company which is a leading international operator of cellular telephony services, primarily in emerging markets where the basic telephone service is often inadequate and where economic development and change are creating new demand for communication services, has witnessed the Zacks Consensus Estimate for its next year earnings increasing 6.1% over the last 60 days.
Millicom International Cellular SA Price and Consensus
This Zacks Rank #1 (Strong Buy) company has a dividend yield of 6.7%, compared with the industry average of 2.7%.
Millicom International Cellular SA Dividend Yield (TTM)
Millicom International Cellular SA dividend-yield-ttm | Millicom International Cellular SA Quote
Enbridge ENB: This leading energy infrastructure company, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.3% over the last 60 days.
Enbridge Inc Price and Consensus
This Zacks Rank #1 (Strong Buy) company has a dividend yield of 5.8%, compared with the industry average of 4.5%.
Enbridge Inc Dividend Yield (TTM)
See the full list of top ranked stocks here.
Find more top income stocks with some of our great premium screens
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>
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
This article originally published on Zacks Investment Research (zacks.com).

Best Income Stocks to Buy for August 18th

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Melco Resorts & Entertainment Limited MLCO: This company which develops, owns and operates casino gaming and entertainment casino resort facilities primarily in Asia, has seen the Zacks Consensus Estimate for its current year earnings increasing 96% over the last 60 days.
Melco Resorts & Entertainment Limited Price and Consensus
China Yuchai International CYD: This company which primarily manufactures and sells diesel engines for medium-duty trucks in China, has seen the Zacks Consensus Estimate for its current year earnings increasing 37.2% over the last 60 days.
China Yuchai International Limited Price and Consensus
Harmony Gold HMY: This company which conducts underground and surface gold mining with operations principally concentrated in South Africa, has seen the Zacks Consensus Estimate for its current year earnings increasing 17.8% over the last 60 days.
Harmony Gold Mining Company Limited Price and Consensus
Harmony Gold Mining Company Limited price-consensus-chart | Harmony Gold Mining Company Limited Quote
Eni E: This company which is among the leading integrated energy players in the world, has seen the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 day.
Eni SpA Price and Consensus
Kimball Electronics KE: This company which operates as a contract manufacturer of durable electronics for the medical, automotive, industrial and public safety markets, has seen the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.
Kimball Electronics, Inc. Price and Consensus
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>
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
This article originally published on Zacks Investment Research (zacks.com).

New Strong Buy Stocks for August 18th

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Honda (HMC) Q1 2027 Earnings Call Transcript

Honda HMC reported quarterly earnings of $2.18 per share for the first quarter of fiscal 2027, beating the Zacks Consensus Estimate by 90.2%. The bottom line also rose from the year-ago quarter’s earnings of 97 cents per share. Quarterly revenues totaled $38.04 billion, which rose from the year-ago period’s figure of $37 billion.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
Segmental Highlights
For the three-month period, which ended on June 30, 2026, revenues from the Automobile segment increased 9.5% year over year to ¥3.88 trillion ($24.3 billion). The segment registered an operating profit of ¥192 billion ($1.2 billion) against an operating loss of ¥29.6 billion in the corresponding quarter of fiscal 2026.
Revenues from the Motorcycle segment came in at around ¥1.14 trillion ($7.15 billion), which increased 19.9% year over year. The unit’s operating profit came in at ¥233.9 billion ($2.1 billion), up 23.8% year over year.
Revenues from the Financial Services segment totaled ¥1.03 trillion ($6.44 billion), up 23.3% year over year. The unit’s operating profit totaled ¥105.8 billion ($658.8 million), up 24.5% year over year.
Revenues from Power Product and Other Businesses came in at ¥94.5 billion ($592.7 million), up 1.8% year over year. The segment reported an operating loss of ¥1.12 billion (7.03 million) compared with the operating loss of ¥219 million incurred in the same period last year.
Financials & FY27 View
Consolidated cash and cash equivalents were ¥5.3 trillion ($32.94 billion) as of June 30, 2026. Long-term debt was around ¥8.7 trillion ($54.1 billion) as of June 30, 2026.
Honda projects fiscal 2027 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 15.19 million units, 2.82 million units and 3.65 million units, respectively. The forecast implies growth of 3.5% year over year in the Motorcycles unit, while it implies a year-over-year rise of 4% and 1.7% for the Automobile and Power Product unit sales, respectively.
For fiscal 2027, Honda forecasts revenues of ¥24.15 trillion, implying a rise of 10.8% year over year. Operating profit is envisioned at ¥650 billion, indicating an improvement from the operating loss of ¥414.3 billion incurred in fiscal 2026. Pretax profit is forecasted to be ¥660 billion, suggesting an improvement from a pretax loss of ¥403 billion incurred in fiscal 2026. The company will pay an interim and year-end dividend of ¥35 per share each in fiscal 2027.
HMC currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Genuine Parts Company GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.
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.

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
P/E	9.58	5.73	8.63	6.76	—	6.76	17.39
Price/Sales	—	—	—	—	—	0.37	0.66
P/B	0.40	0.44	—	0.52	0.52	0.52	1.68
P/FCF	0.00	0.00	—	0.00	0.00	0.00	12.74

Honda Motor Company, Ltd.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
ROE	—	8.06	—	—	—	8.06	15.36
ROA	—	3.21	—	—	—	3.21	4.97
ROI	—	5.08	—	—	—	5.08	8.47
Net Worth	34.09	—	42.18	—	—	42.18	0.82
Quick Ratio	—	1.04	—	—	—	1.04	0.85
Current Ratio	—	1.29	—	—	—	1.29	1.38

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
Net Profit Margin	—	6.13	—	—	—	6.13	5.79
Operating Margin	—	—	—	—	—	6.30	8.36
Gross Margin	—	21.47	—	—	—	21.47	39.57
Return on tangible equity	—	8.74	—	—	—	8.74	22.12

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
EPS	—	—	—	—	—	1.06	0.52
EPS Forecast	—	—	—	—	—	0.85	0.51
Revenue	—	38.19B	—	—	—	38.19B	193.00M
Gross Profit	—	8.49B	—	—	—	8.49B	—
EBITDA	—	—	—	—	—	2.92B	—