Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. It also offers wine under the Cook's California Champagne, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, Robert Mondavi Winery, Schrader, and The Prisoner Wine Company brands; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson's Green Brier, and SVEDKA brands. The company provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.

Constellation Brands looks like a high-quality but not cheap business: profitability and returns are noticeably stronger than industry averages, yet valuation based on revenue and balance-sheet metrics remains demanding. The P/E ratio of 12.4 is below the industry median, which supports the idea of a reasonable earnings valuation, and P/FCF is also below the industry level, indicating solid free cash flow generation. At the same time, P/S and P/B are above the median, so the market is still paying a premium for margin stability and capital quality. Gross margin of around 52.6%, operating margin of 31.5%, and net margin of 20.2% are a very strong set of figures for the consumer staples sector, and the year-by-year trend is generally improving. ROE of 22.3%, ROA of 7.7%, and ROI of 10.2% also confirm high capital efficiency, although some of the metrics appear volatile over the short term. On the other hand, liquidity is weak: a quick ratio of 0.48 and a current ratio of 1.08 are below industry benchmarks, while cash on hand remains modest, limiting the margin of safety. The debt burden is also higher than desirable: a debt/equity ratio of 1.06 and significant long-term debt create a valuation risk, especially if cash flows weaken temporarily. The positive point is that debt has been declining in recent periods, while equity is growing, which is gradually improving the balance sheet. Revenue and profit remain at a high level, and net income and operating income confirm the company’s ability to generate earnings consistently. The dividend yield of 0.79% has increased compared with last year, but for investors it is more of an added benefit than a main driver of revaluation. Overall, the fundamentals support the current valuation better than they undermine it, but due to the premium on revenue/balance-sheet metrics, low liquidity, and debt burden, the potential for a meaningful upside appears limited. Therefore, only a moderate negative adjustment to the forecast is appropriate, reflecting the balance between strong operating performance and an imperfect balance sheet.

Constellation Brands, Inc.

Слабый индекс, незначительно вырос. Быки укрепили уверенность в своих позициях.

Weak index, slightly up. Bulls have strengthened their confidence in their positions.

Сильный индекс, без изменений. Рынок не поддерживает быков.

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

Слабый индекс, без изменений. Отток средств из лонгов остается значительным.

Weak index, flat. The outflow of funds from longs remains significant.

Strong margins and profitability support STZ’s valuation, but weak liquidity, high debt, and a premium on P/S and P/B limit upside potential.

RH (RH) came out with quarterly earnings of $2.7 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $2.93 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +542.86%. A quarter ago, it was expected that this furniture and housewares company would post a loss of $2.13 per share when it actually produced a loss of $1.97, delivering a surprise of +7.51%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
RH, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $922.15 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.97%. This compares to year-ago revenues of $899.15 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
RH shares have lost about 22.2% since the beginning of the year versus the S&P 500's gain of 11.6%.
What's Next for RH?
While RH has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for RH was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.89 on $964 million in revenues for the coming quarter and $4.66 on $3.62 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Consumer Staples sector, Constellation Brands (STZ), is yet to report results for the quarter ended August 2026.
This wine, liquor and beer company is expected to post quarterly earnings of $3.63 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Constellation Brands' revenues are expected to be $2.57 billion, up 3.8% from the year-ago quarter.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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
RH (RH) : Free Stock Analysis Report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

RH (RH) Q2 Earnings and Revenues Top Estimates

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Constellation Brands Inc (Symbol: STZ) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Constellation Brands Inc an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of STZ entered into oversold territory, changing hands as low as $120.43 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Constellation Brands Inc, the RSI reading has hit 29.7 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 49.5. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, STZ's recent annualized dividend of 4.12/share (currently paid in quarterly installments) works out to an annual yield of 3.21% based upon the recent $128.18 share price.
A bullish investor could look at STZ's 29.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on STZ is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
Further STZ Research:

RSI Alert: Constellation Brands Now Oversold

Key Points
STZ is priced for disappointment, even though its core beer franchise remains a heavyweight.
Constellation's beer portfolio was the overall top share gainer in the U.S. beer market last quarter.
Investors are getting a historically high yield while waiting for a recovery, with much of the bad news already baked in.
Shares of Constellation Brands (NYSE: STZ) have dropped 53% from their high to around $128, sitting just above a 52-week low of $126.45. The slide reflects muted growth expectations as weaker consumer spending has pressured sales.
The key question is whether those low expectations go too far. At roughly 11 times forward earnings, the stock looks cheap for a company with exclusive U.S. distribution rights to some of the country's most popular imported beers. At this price, it may look more like a buy than one to avoid.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why the stock is down -- and what the market might be missing
Constellation imports, markets, and sells several major Mexican beer brands, including Modelo, Corona, Pacifico, and Victoria, and it also owns wine brands like Kim Crawford. But higher gas prices and tighter discretionary budgets have made consumers more cautious, weighing on results over the past year.
In fiscal 2026 (ended in February), organic sales (excluding the impact of acquisitions and divestitures) fell 10% year over year, driven mainly by weakness in the wine segment. Results have begun to stabilize, but overall demand remains soft.
In the most recent quarter, comparable organic sales rose 3% year over year. Beer is the sales engine, representing more than 90% of the company's total sales.
Notably, the softness doesn't appear to be a loss of brand power, as the company's brands still resonate with consumers. Modelo Especial remains the top brand in U.S. beer by dollar sales. Overall, Constellation's beer portfolio was the biggest market-share gainer last quarter. That disconnect between strong brand momentum and a beaten-down stock price is why the shares look more like a buy than a sell today.
The highest dividend yield in the stock's history
Constellation continues to produce strong free cash flow, with trailing 12-month free cash flow of $1.83 billion. It returns about 39% of that to shareholders through dividends. Management raised the dividend by $0.01 earlier this year to $1.03 per share quarterly, pushing the forward yield to an attractive 3.2% -- the highest yield in the company's history.
Sales may be soft right now, but consumers aren't likely to stop buying beer. And the company's exclusive rights to distribute and market brands like Corona and Modelo create a durable competitive moat.
There are real risks, including shifting tariff policy, intense competition, and changing preferences across beer, wine, and spirits. Even so, at around 11 times expected earnings and 12 times free cash flow, much of the bad news already appears priced in.
Of course, a prolonged slump could still push the stock lower. But investors are being paid a relatively high dividend yield while they wait for demand to improve.
Over the long run, I don't think people are giving up beer. At this valuation, Constellation Brands looks undervalued in my view -- and positioned to rebound sooner or later.
Should you buy stock in Constellation Brands right now?
Before you buy stock in Constellation Brands, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Constellation Brands wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.

Should you Avoid Constellation Brands Stock, Even at a 52-Week Low?

Constellation Brands, Inc. STZ maintains a strong position in the beer, wine and spirits market, supported by its premium-focused strategy, powerful brand portfolio and disciplined approach to portfolio management. The company offers a diverse range of premium, consumer-focused brands, including Modelo Especial, Corona Extra, Pacifico, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company and High West. The strength of these brands positions Constellation Brands to capitalize on evolving consumer preferences and pursue opportunities across the global beverage alcohol market.
The company is focused on high-margin, high-growth segments of the beverage alcohol market, leveraging its direct-to-consumer capabilities and expanding global presence. Its flagship beer brands, including Modelo, Corona and Pacifico, remain important growth drivers and continue to strengthen its position in the U.S. beer market. The company is also investing in its Power Brands through brand-building initiatives, product innovation and new offerings designed to cater to evolving consumer preferences.
Constellation Brands has further sharpened its strategy around its core premium brands across beer, wine and spirits, with the goal of gaining market share, improving margins and driving sustainable long-term growth. Continued investments in brand building, strong beer business performance, premiumization, product innovation and cost-efficiency initiatives are expected to remain important growth and profitability drivers for Constellation Brands.
Hence, Constellation Brands is well-positioned in the beverage alcohol market, supported by its strong premium brand portfolio and focus on high-growth segments. Modelo, Corona and Pacifico remain key beer growth drivers, while brand building, premiumization, innovation and cost-efficiency initiatives are expected to support market share gains, margin expansion and long-term growth.
STZ’s Price Performance, Valuation & Estimates
Shares of Constellation Brands have lost 7.7% in the past three months against the industry’s growth of 4.1%.
From a valuation standpoint, STZ trades at a forward price-to-earnings ratio of 10.7X compared with the industry’s average of 15.14X.
The Zacks Consensus Estimate for STZ’s fiscal 2027 and fiscal 2028 earnings per share (EPS) indicates year-over-year growth of 0.2% and 3.7%, respectively. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has been stable in the past 30 days.
Constellation Brands stock currently carries a Zacks Rank #3 (Hold).
Key Consumer Staple Picks
The Chef's Warehouse CHEF, which is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CHEF’s current-year sales indicates growth of 10.6% from the prior-year level. CHEFdelivered a trailing four-quarter earnings surprise of 30.4%, on average.
Medifast, Inc. MED, which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank #2 (Buy). MED missed the average earnings surprise by a sharp margin in the trailing four quarters.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 27.3% from the year-ago number.
United Natural Foods UNFI, which is the leading distributor of natural, organic and specialty food and non-food products, currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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

Premiumization and Strong Brands Fuel Constellation Brands' Growth

Brown-Forman Corporation BF.B is slated to release first-quarter fiscal 2027 results on Sept. 2. The alcoholic beverage bigwig’s earnings are expected to have increased. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $921.2 million, indicating a drop of 0.3% from the year-ago quarter.
The consensus mark for earnings is pegged at 38 cents per share, indicating an increase of 5.6% from the year-ago period’s number. Earnings estimates for the fiscal first quarter have been unchanged in the past 30 days.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 63.6%. In the trailing four quarters, BF.B delivered a negative earnings surprise of 11.9%, on average.
Key Factors Likely to Affect BF.B’s Q1 Results
Brown-Forman has been benefiting from its premiumization strategy and strong brand investments. BF.B is advancing its pricing strategy, global expansion and revenue-growth management initiatives. The company is gaining traction from portfolio evolution, Jack Daniel's Country cocktail business model change and strong price mix.
Brown-Forman is focusing on expanding its geographic presence, strengthening its core brands, accelerating innovation and premiumization, and expanding its ready-to-drink portfolio. The company is also working to improve its route-to-consumer model, streamline operations and enhance cost efficiency. In international markets, Brown-Forman is increasing distribution and scale, particularly in Japan and other emerging markets. It continues to invest in key brands such as Jack Daniel’s, while using new products, pricing, revenue growth management and targeted marketing to drive organic growth. All such aforesaid efforts are likely to have aided the company’s performance in the quarter under review. The Zacks Consensus Estimate for Emerging markets’ revenues is pegged at $251 million for the quarter under review, up 12.1% year over year.
However, Brown-Forman has been grappling with a volatile operating landscape including geopolitical uncertainties and softening consumer demand. Consumer demand has remained muted across key markets, as inflationary pressures and cautious discretionary spending continue to weigh on premium alcohol purchases.
The company’s results have also been pressured by portfolio-related headwinds, including the absence of Finlandia and Sonoma-Cutrer, the conclusion of the Korbel relationship and the lack of benefits from the prior-year Sonoma-Cutrer transition services agreement. Weaknesses in Jack Daniel’s Tennessee Whiskey, Herradura and Jack Daniel’s Tennessee Honey are expected to have further weighed on sales trends. These factors are expected to have hurt its first-quarter fiscal 2027 performance, with the company witnessing lower volumes across several brands and regions.
Brown-Forman Corporation Price and EPS Surprise
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Brown-Forman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Brown-Forman has an Earnings ESP of -1.09% and a Zacks Rank #4 (Sell) at present.
Valuation Picture of BF.B Stock
From a valuation perspective, Brown-Forman stock is trading at a premium relative to the industry benchmarks. It has a forward 12-month price-to-earnings of 16.54X, above the Beverages - Alcohol industry’s average of 15.05X.
Brown-Forman shares have lost 2% in the past six months against the industry’s growth of 0.4%.
Stocks With the Favorable Combination
Here are a few companies, which according to our model, have the right combination of elements to post an earnings beat:
Sysco SYY currently has an Earnings ESP of +1.90% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter fiscal 2027 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.17, up 1.7% from the year-ago period. SYY has a trailing four-quarter earnings surprise of 1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Sysco’s quarterly revenues is pegged at $22.2 billion, which implies an increase of 4.8% from the prior-year quarter.
Constellation Brands STZ currently has an Earnings ESP of +0.09% and a Zacks Rank of 3. The company is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2027 numbers. The Zacks Consensus Estimate for STZ’s quarterly revenues is pegged at $2.6 billion, which indicates a 3.7% rise from the prior-year quarter.
The consensus estimate for Constellation Brands’ quarterly earnings per share is pegged at $3.63, remaining in line with the year-ago period. STZ has a trailing four-quarter earnings surprise of 9.6%, on average.
Simply Good Foods SMPL currently has an Earnings ESP of +0.02% and a Zacks Rank of 3. The company is likely to register declines in its top and bottom lines when it reports fourth-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for Simply Good Foods’ quarterly revenues is pegged at $330.5 million, which indicates a decrease of 10.4% from the prior-year quarter.
The consensus estimate for Simply Good Foods’ quarterly earnings per share is pegged at 40 cents, down 13% year over year. SMPL has a trailing four-quarter earnings surprise of 9.2%, on average.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them 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).

Brown-Forman's Q1 Earnings on the Deck: Is a Beat in the Cards?

Constellation Brands, Inc. STZ maintains a solid foothold in the beer, wine and spirits market, driven by its focus on premiumization, a strong lineup of brands and prudent portfolio management. Its portfolio comprises a broad array of consumer-centric, premium labels, such as Modelo Especial, Corona Extra, Pacifico, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company and High West. Leveraging the strength of these brands, the company remains well-positioned to meet evolving consumer tastes and benefit from growth opportunities in the global beverage industry.
Constellation Brands is focused on building a portfolio centered on high-margin, fast-growing segments within the beverage alcohol industry, supported by its direct-to-consumer capabilities and expanding global footprint. Its flagship beer brands — Modelo, Corona and Pacifico — remain key growth engines, strengthening the company’s position in the U.S. beer market. Constellation Brands continues to invest in its Power Brands through product innovation and by capitalizing on evolving consumer preferences with successful new offerings.
The company remains well-positioned for long-term growth as it focuses on premium, high-margin categories, with an emphasis on expanding market presence and enhancing profitability. Constellation Brands is refining its wine and spirits portfolio to emphasize higher-end brands with stronger growth and margin potential. The company is also expanding its direct-to-consumer and international reach while pursuing productivity, cost-saving and digital initiatives to improve operational efficiency.
At its core, Constellation Brands is well-positioned to capitalize on the ongoing shift toward premium beverages, backed by a strong portfolio of category-leading brands and a clear focus on growth. A strong beer portfolio, ongoing brand investments, premiumization strategy, innovations and cost-saving initiatives provide important support for STZ’s continued growth and long-term value creation.
STZ’s Price Performance, Valuation & Estimates
Shares of Constellation Brands have lost 15% in the past six months compared with the industry’s decline of 4.3%.
From a valuation standpoint, STZ trades at a forward price-to-earnings ratio of 11.09X compared with the industry’s average of 14.97X.
The Zacks Consensus Estimate for STZ’s fiscal 2027 and fiscal 2028 earnings per share (EPS) indicates year-over-year growth of 0.2% and 3.7%, respectively. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has moved north in the past 30 days.
Constellation Brands stock currently carries a Zacks Rank #3 (Hold).
Key Consumer Staple Picks
The Chefs' Warehouse, Inc. CHEF, which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 10.6% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Darling Ingredients Inc. DAR, which produces sustainable natural ingredients derived from edible and inedible bio-nutrients, currently sports a Zacks Rank of 1.
The consensus estimate for Darling Ingredients’ current financial-year sales is expected to rise 12.8% from the year-ago reported figure. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
Utz Brands, Inc. UTZ, which is a leading manufacturer of a diverse portfolio of salty snacks, currently carries a Zacks Rank #2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for UTZ’s current financial-year sales indicates a jump of 3.7% from the year-ago number.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them 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

Constellation Brands' Premiumization Plan Sets the Stage for Growth

The S&P 500 Index ($SPX) (SPY) closed down by -0.52% on Monday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -0.17%. E-mini S&P futures (ESU26) fell -0.48%, and September E-mini Nasdaq futures (NQU26) fell -0.17%.
Stock indices settled lower on Monday, with the Dow Jones Industrials falling to a 2-week low. The prospects for the US-Iran war to continue boosted crude oil prices to a 3-week high and weighed on market sentiment on Monday after President Trump said he’s not interested in extending the expiring 60-day truce with Iran. The jump in crude oil prices also boosted inflation expectations and bond yields, bearish factors for stocks. The 10-year T-note yield rose +3 bp to 4.72%.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks initially found support on Monday amid strength in technology stocks after stellar revenue growth at Anthropic PBC bolstered the view that spending on artificial intelligence will be sustained. Anthropic told prospective investors that its Q2 revenue jumped by at least 14-fold from the same period last year, according to a report today by Bloomberg. However, the weakness in software stocks is weighing on the Dow Jones Industrial Average.
Stocks also found support on some better-than-expected US economic news. The Aug Empire manufacturing survey general business conditions index unexpectedly rose +5.0 to a 4.5-year high of 20.6, stronger than expectations of a decline to 10.0. Also, the Aug NAHB housing market index unexpectedly rose +1 to 35, stronger than expectations of a decline to 33.
Signs of weakness in China’s economy undercut global growth prospects and were negative for stocks. China's July industrial production rose +4.5% y/y, weaker than expectations of +5.0% y/y. Also, China's July retail sales rose +0.6% y/y, weaker than expectations of +1.5% y/y. In addition, the China July survey jobless rate rose +0.2 to 5.2%, showing a weaker labor market than expectations of 5.1%. Finally, China's July new home prices fell -0.18% m/m, the thirty-eighth consecutive month home prices have declined.
Sep WTI crude oil prices (CLU26) rallied more than +2% on Monday to a 3-week high amid fresh Israeli attacks on Iran-backed Hezbollah in Lebanon, dampening the prospects of ending hostilities in the Middle East and a quick reopening of the Strait of Hormuz. Also, Israel has struck Iran-backed Hamas in Gaza, the Yemen- based Houthis have attacked ships in the Red Sea, and several vessels have been hit by projectiles in the Strait of Hormuz. President Trump said today that the US naval blockade on Iranian ports is putting pressure on the country, and he has no timeline for resolving the US-Iran conflict.
Crude prices raced to their high on Monday after US Energy Secretary Chris Wright said that the US is playing the long game with Iran, implying the US has no plans for de-escalation of the conflict, potentially limiting crude supplied from the Middle East.
Iran and Oman appear to be edging closer to a deal on how the Strait of Hormuz should be managed, agreeing on routes through the waterway. Iranian Foreign Ministry spokesman Baghaei said on Monday that finalizing a "shipping map" is part of a broader accord to govern traffic through the strait and constitutes an independent arrangement between the two states that will uphold their sovereignty and ensure the safe transit of vessels.
Treasury Secretary Bessent said last week that the administration will soon announce unprecedented economic measures against Iran that “have never been seen in the history of economic isolation of a country.” The economic measures would add to the current US naval blockade of Iranian ports.
There have been no signs of progress toward a US-Iran agreement to fully open the Strait of Hormuz. An Iranian military spokesperson said last Thursday that no ship can safely pass the Strait of Hormuz without Iran’s authorization and supervision and that President Trump’s claims of control over the Strait are “nothing more than lies.” The Iranian statement was in response to President Trump's comment last Tuesday that the US has “total control over the Hormuz Strait” and that “we own it.”
The outlook for strong Q2 earnings is a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. 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. So far, earnings results have been positive, with 85% of the 456 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 36% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled mixed on Monday. The Euro Stoxx 50 closed down -0.14%. China's Shanghai Composite climbed to a 5-week high and closed up +1.41%. Japan's Nikkei-225 Stock Average closed up +0.74%.
Interest Rates
September 10-year T-notes (ZNU6) closed down -4 ticks on Monday. The 10-year T-note yield rose up +3.2 bp to 4.724%. T-notes came under pressure on Monday after WTI crude oil prices rose more than +2% to a 3-week high, which boosted inflation expectations. The 10-year breakeven inflation rate rose to a 3-week high of 2.296% on Monday. Also, Monday’s stronger-than-expected US economic news on the Aug Empire manufacturing index and Aug NAHB housing market index weighed on T-note prices.
European government bond yields moved higher on Monday. The 10-year German bund yield rose to a 15-year high of 3.223% and finished up +1.7 bp to 3.221%. The 10-year UK gilt yield climbed to a 3-week high of 5.063% and finished up +2.3 bp to 5.060%.
Markets are discounting a 94% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Software stocks retreated on Monday, pressuring the overall market. Thomson Reuters (TRI) closed down more than -4% to lead losers in the Nasdaq 100, and ServiceNow (NOW) closed down more than -4%. Also, Adobe Systems (ADBE), Datadog (DDOG), Workday (WDAY), and Microsoft (MSFT) closed down more than -3%. In addition, Atlassian Corp (TEAM), Autodesk (ADSK), Intuit (INTU), Oracle (ORCL), and Salesforce (CRM) closed down more than -2%.
Airlines and cruise line operators fell on Monday after WTI crude oil rose more than +2% to a 3-week high. Alaska Air Group (ALK) and Norwegian Cruise Line Holdings (NCLH) closed down more than -4%, and American Airlines Group (AAL), United Airlines Holdings (UAL), and Southwest Airlines (LUV) closed down more than -2%. Also, Delta Air Lines (DAL), Carnival (CCL), and Royal Caribbean Cruises (RCL) closed down more than -1%.
Chipmakers and AI-infrastructure stocks moved higher on Monday, a supportive factor for the broader market. The iShares Semiconductor ETF (SOXX) closed up more than +1%. Sandisk (SNDK) closed up more than +8% to lead gainers in the S&P 500 and Nasdaq 100, and Western Digital (WDC), Applied Materials (AMAT), and Marvell Technology (MRVL) closed up more than +5%. Also, Micron Technology (MU) closed up more than +4%, and Lam Research (LRCX) closed up more than +3%. In addition, Seagate Technology Holdings Plc (STX) and ASML Holding NV (ASML) closed up more than +2%, and Microchip Technology (MCHP), KLA Corp (KLAC), and Texas Instruments (TXN) closed up more than +1%.
Energy producers and service providers rose on Monday after WTI crude rallied more than +2% to a 3-week high. Devon Energy (DVN) closed up more than +3%, and APA Corp (APA) and Phillips 66 (PSX) closed up more than +2%. Also, Chevron (CVX), Diamondback Energy (FANG), Occidental Petroleum (OXY), and Valero Energy (VLO) closed up more than +1%.
EyePoint (EYPT) closed down more than -66% after saying its experimental treatment for an eye disease failed to meet its primary goal in a late-stage trial.
Constellation Brands (STZ) closed down more than -6% after Berkshire Hathaway announced that it liquidated its holdings in the company.
L3Haris Technologies (LHX) closed down more than -4% after saying that Christopher Kubasik stepped down as CEO and chairman of the board, effective immediately.
SentinelOne (S) and Netskope (NTSK) closed down more than -3% after Deutsche Bank downgraded the stocks from buy to hold.
Onto Innovation (ONTO) closed up more than +5% after Goldman Sachs initiated a buy rating on the stock and a price target of $400.
Pulse Biosciences (PLSE) closed up more than +5% after Needham & Co. initiated coverage on the stock with a buy recommendation and a $58 price target.
Earnings Reports (8/18/2026)
Amer Sports Inc (AS), Home Depot Inc/The (HD), Jack Henry & Associates Inc (JKHY), Keysight Technologies Inc (KEYS), Toll Brothers Inc (TOL).
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.

Stocks Settle Lower on Rising Crude Prices and Higher Bond Yields

The S&P 500 Index ($SPX) (SPY) is down by -0.15% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.44%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.28%. E-mini S&P futures (ESU26) are down -0.17%, and September E-mini Nasdaq futures (NQU26) are up +0.22%.
Stock indices are mixed today, with the Dow Jones Industrials falling to a 2-week low. The strength in technology stocks is lifting the broader market today after stellar revenue growth at Anthropic PBC bolstered the view that spending on artificial intelligence will be sustained. Anthropic told prospective investors that its Q2 revenue jumped by at least 14-fold from the same period last year, according to a report today by Bloomberg. However, the weakness in software stocks is weighing on the Dow Jones Industrial Average.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks also found support on some better-than-expected US economic news. The Aug Empire manufacturing survey general business conditions index unexpectedly rose +5.0 to a 4.5-year high of 20.6, stronger than expectations of a decline to 10.0. Also, the Aug NAHB housing market index unexpectedly rose +1 to 35, stronger than expectations of a decline to 33.
Signs of weakness in China’s economy undercut global growth prospects and were negative for stocks. China's July industrial production rose +4.5% y/y, weaker than expectations of +5.0% y/y. Also, China's July retail sales rose +0.6% y/y, weaker than expectations of +1.5% y/y. In addition, the China July survey jobless rate rose +0.2 to 5.2%, showing a weaker labor market than expectations of 5.1%. Finally, China's July new home prices fell -0.18% m/m, the thirty-eighth consecutive month home prices have declined.
Sep WTI crude oil prices (CLU26) are moving higher today amid fresh Israeli attacks on Iran-backed Hezbollah in Lebanon, dampening the prospects of ending hostilities in the Middle East and a quick reopening of the Strait of Hormuz. Also, Israel has struck Iran-backed Hamas in Gaza, the Yemen- based Houthis have attacked ships in the Red Sea, and several vessels have been hit by projectiles in the Strait of Hormuz. President Trump said today that the US naval blockade on Iranian ports is putting pressure on the country, and he has no timeline for resolving the US-Iran conflict.
Crude oil prices fell from their best level today on signs that Iran and Oman appear to be edging closer to a deal on how the Strait of Hormuz should be managed, agreeing on routes through the waterway. Iranian Foreign Ministry spokesman Baghaei said finalizing a "shipping map" is part of a broader accord to govern traffic through the strait and constitutes an independent arrangement between the two states that will uphold their sovereignty and ensure the safe transit of vessels.
Treasury Secretary Bessent said last week that the administration will soon announce unprecedented economic measures against Iran that “have never been seen in the history of economic isolation of a country.” The economic measures would add to the current US naval blockade of Iranian ports.
There have been no signs of progress toward a US-Iran agreement to fully open the Strait of Hormuz. An Iranian military spokesperson said last Thursday that no ship can safely pass the Strait of Hormuz without Iran’s authorization and supervision and that President Trump’s claims of control over the Strait are “nothing more than lies.” The Iranian statement was in response to President Trump's comment last Tuesday that the US has “total control over the Hormuz Strait” and that “we own it.”
The outlook for strong Q2 earnings is a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. 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. So far, earnings results have been positive, with 85% of the 456 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 31% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are higher today. The Euro Stoxx 50 is up +0.03%. China's Shanghai Composite climbed to a 5-week high and closed up +1.41%. Japan's Nikkei-225 Stock Average closed up +0.74%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -1.5 ticks. The 10-year T-note yield is up +0.8 bp to 4.700%. Higher WTI crude oil prices today are boosting inflation expectations and weighing on T-notes. The 10-year breakeven inflation rate rose to a 3-week high of 2.296% today. Also, today’s stronger-than-expected US economic news on the Aug Empire manufacturing index and Aug NAHB housing market index weighed on T-note prices.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 3-week high of 3.214% and is up +0.3 bp to 3.207%. The 10-year UK gilt yield is up +0.1 bp to 5.038%.
Markets are discounting a 92% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are edging higher today, a supportive factor for the broader market. The iShares Semiconductor ETF (SOXX) is up more than +1%. Sandisk (SNDK) is up more than +10% to lead gainers in the S&P 500 and Nasdaq 100, and Western Digital (WDC) and Marvell Technology (MRVL) are up more than +7%. Also, Micron Technology (MU) and Applied Materials (AMAT) are up more than +5%, and Seagate Technology Holdings Plc (STX) is up more than +3%. In addition, Microchip Technology (MCHP), Lam Research (LRCX), Intel (INTC), and Texas Instruments (TXN) are up more than +2%, and Analog Devices (ADI), ASML Holding NV (ASML), and Broadcom (AVGO) are up more than +1%.
Software stocks are under pressure today, limiting gains in the overall market. Datadog (DDOG) is down more than -3% to lead losers in the Nasdaq 100, and Adobe Systems (ADBE) and ServiceNow (NOW) are down more than -3%. Also, Salesforce (CRM), Workday (WDAY), Atlassian Corp (TEAM), Autodesk (ADSK), Intuit (INTU), Oracle (ORCL), and Microsoft (MSFT) are down more than -2%.
EyePoint (EYPT) is down more than -71% after saying its experimental treatment for an eye disease failed to meet its primary goal in a late-stage trial.
Constellation Brands (STZ) is down more than -5% to lead losers in the S&P 500 after Berkshire Hathaway announced that it liquidated its holdings in the company.
SentinelOne (S) and Netskope (NTSK) are down more than 4% after Deutsche Bank downgraded the stocks from buy to hold.
L3Haris Technologies (LHX) is down more than -3% after saying that Christopher Kubasik stepped down as CEO and chairman of the board, effective immediately.
Onto Innovation (ONTO) is up more than +4% after Goldman Sachs initiated a buy rating on the stock and a price target of $400.
Pulse Biosciences (PLSE) is up more than +3% after Needham & Co. initiated coverage on the stock with a buy recommendation and a $58 price target.
Astera Labs (ALAB) is up more than +2% after Northland Securities upgraded the stock to outperform from market perform with a price target of $350.
Earnings Reports (8/17/2026)
Fabrinet (FN), XP Inc (XP).
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.

Stock Indices Waver on Strength in Chipmakers vs Weakness in Software Companies

The S&P 500 Index ($SPX) (SPY) is up by +0.17% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.13%. E-mini S&P futures (ESU26) are up +0.05%, and September E-mini Nasdaq futures (NQU26) are up +0.34%.
Stock indices are mixed today, with the Dow Jones Industrials falling to a 2-week low. The strength in technology stocks is lifting the broader market today after stellar revenue growth at Anthropic PBC bolstered the view that spending on artificial intelligence will be sustained. Anthropic told prospective investors that its Q2 revenue jumped by at least 14-fold from the same period last year, according to a report today by Bloomberg. However, the weakness in software stocks is weighing on the Dow Jones Industrial Average.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks also found support on some better-than-expected US economic news. The Aug Empire manufacturing survey general business conditions index unexpectedly rose +5.0 to a 4.5-year high of 20.6, stronger than expectations of a decline to 10.0.
Signs of weakness in China’s economy undercut global growth prospects and were negative for stocks. China's July industrial production rose +4.5% y/y, weaker than expectations of +5.0% y/y. Also, China's July retail sales rose +0.6% y/y, weaker than expectations of +1.5% y/y. In addition, the China July survey jobless rate rose +0.2 to 5.2%, showing a weaker labor market than expectations of 5.1%. Finally, China's July new home prices fell -0.18% m/m, the thirty-eighth consecutive month home prices have declined.
Sep WTI crude oil prices (CLU26) are moving higher today amid fresh Israeli attacks on Iran-backed Hezbollah in Lebanon, dampening the prospects of ending hostilities in the Middle East and a quick reopening of the Strait of Hormuz. Also, Israel has struck Iran-backed Hamas in Gaza, the Yemen- based Houthis have attacked ships in the Red Sea, and several vessels have been hit by projectiles in the Strait of Hormuz.
Crude oil prices fell from their best level today on signs that Iran and Oman appear to be edging closer to a deal on how the Strait of Hormuz should be managed, agreeing on routes through the waterway. Iranian Foreign Ministry spokesman Baghaei said finalizing a "shipping map" is part of a broader accord to govern traffic through the strait and constitutes an independent arrangement between the two states that will uphold their sovereignty and ensure the safe transit of vessels.
Treasury Secretary Bessent said last week that the administration will soon announce unprecedented economic measures against Iran that “have never been seen in the history of economic isolation of a country.” The economic measures would add to the current US naval blockade of Iranian ports.
There have been no signs of progress toward a US-Iran agreement to fully open the Strait of Hormuz. An Iranian military spokesperson said last Thursday that no ship can safely pass the Strait of Hormuz without Iran’s authorization and supervision and that President Trump’s claims of control over the Strait are “nothing more than lies.” The Iranian statement was in response to President Trump's comment last Tuesday that the US has “total control over the Hormuz Strait” and that “we own it.”
The outlook for strong Q2 earnings is a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. 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. So far, earnings results have been positive, with 85% of the 456 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 32% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.05%. China's Shanghai Composite climbed to a 5-week high and closed up +1.41%. Japan's Nikkei-225 Stock Average closed up +0.74%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -3 ticks. The 10-year T-note yield is up +1.2 bp to 4.704%. Higher WTI crude oil prices today are boosting inflation expectations and weighing on T-notes. The 10-year breakeven inflation rate rose to a 3-week high of 2.296% today. Also, today’s news that the Aug Empire manufacturing index unexpectedly rose to a 4.5-year high weighed on T-note prices.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 3-week high of 3.214% and is up +0.7 bp to 3.211%. The 10-year UK gilt yield is up +0.2 bp to 5.039%.
Markets are discounting a 92% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are edging higher today, a supportive factor for the broader market. The iShares Semiconductor ETF (SOXX) is up more than +1%. Marvell Technology (MRVL) is up more than +5% to lead gainers in the S&P 500, and Sandisk (SNDK) is up more than +5%. Also, Western Digital (WDC) and Micron Technology (MU) are up more than +4%, and Applied Materials (AMAT) is up more than +3%. In addition, Seagate Technology Holdings Plc (STX) is up more than +2%, and KLA Corp (KLAC), ASML Holding NV (ASML), and Texas Instruments (TXN) are up more than +1%.
Software stocks are under pressure today, limiting gains in the overall market. Datadog (DDOG) is down more than -3% to lead losers in the Nasdaq 100, and Salesforce (CRM) is down more than -2% to lead losers in the Dow Jones Industrials. Also, Adobe Systems (ADBE), ServiceNow (NOW), Workday (WDAY), Atlassian Corp (TEAM), Autodesk (ADSK), Intuit (INTU), and Oracle (ORCL) are down more than -2%. In addition, Microsoft (MSFT) and Palantir Technologies (PLTR) are down more than -1%.
Astera Labs (ALAB) is up more than +6% to lead gainers in the Nasdaq 100 after Northland Securities upgraded the stock to outperform from market perform with a price target of $350.
Onto Innovation (ONTO) is up more than +4% after Goldman Sachs initiated a buy rating on the stock and a price target of $400.
Target Hospitality (TH) is up more than +2% after Morgan Stanley initiated coverage on the stock with an overweight recommendation and a $22 price target.
EyePoint (EYPT) is down more than -71% after saying its experimental treatment for an eye disease failed to meet its primary goal in a late-stage trial.
Constellation Brands (STZ) is down more than -4% to lead losers in the S&P 500 after Berkshire Hathaway announced that it liquidated its holdings in the company.
SentinelOne (S) and Netskope (NTSK) are down more than 4% after Deutsche Bank downgraded the stocks from buy to hold.
L3Haris Technologies (LHX) is down more than -3% after saying that Christopher Kubasik stepped down as CEO and chairman of the board, effective immediately.
Earnings Reports (8/17/2026)
Fabrinet (FN), XP Inc (XP).
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

Stocks Mixed on Strength in Chipmakers vs Weakness in Software Companies

Key Points
Berkshire Hathaway's portfolio has meaningfully changed since Warren Buffett retired as CEO on Dec. 31.
Abel continued an eight-quarter streak of paring down Berkshire's stake in Bank of America -- and profit-taking likely tells only part of the story.
Meanwhile, an artificial intelligence (AI) pioneer has quickly become Berkshire's third-largest holding.
Although earnings season is often the pinnacle of each quarter for investors, don't overlook the value of 13F-filing season. A 13F allows investors to track which stocks Wall Street's savviest money managers, including billionaire investors, have been buying and selling.
Arguably, no 13F release is more anticipated than that of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB). Following Warren Buffett's retirement as CEO on Dec. 31, Greg Abel has been responsible for Berkshire's $358 billion investment portfolio. Based on Berkshire's latest 13F, detailing second-quarter trading activity, Buffett's successor continued to pare down Bank of America (NYSE: BAC) and absolutely piled into virtual monopoly Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) for a second consecutive quarter.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Berkshire's bosses are steadily ringing the register on Bank of America
Although Berkshire's new boss sent Constellation Brands to the chopping block and meaningfully cut his company's stakes in Kroger and Capital One Financial, it's the 30,230,000 shares of BofA that were sold in the second quarter that stand out.
This marks the eighth consecutive quarter that Bank of America stock has been sold by Buffett or Abel, with the total position now reduced by 53%, or nearly 549.5 million shares.
Profit-taking is the most logical reason behind this selling, but it may not be the only catalyst. Warren Buffett and Greg Abel are both unwavering when it comes to getting a good deal. When Buffett originally took a stake in BofA's preferred stock in August 2011, its common stock was trading at a 62% discount to its book value. As of Aug. 14, BofA stock commanded a 64% premium to book value.
Additionally, Bank of America is the most interest-sensitive among the United States' money-center banks. When the Federal Reserve undertook six rate cuts from September 2024 to December 2025, no big bank's net interest income was more adversely affected than BofA.
Google parent Alphabet is now Berkshire Hathaway's third-largest holding
Despite significant purchases in Macy's and Delta Air Lines for a second straight quarter, the eye-opener of Berkshire's 13F, and the stock that single-handedly ended 14 consecutive quarters of net stock sales, is Google parent Alphabet.
Including a June 1-announced $10 billion private placement with Alphabet, Abel oversaw the purchase of 24,541,369 Class A shares (GOOGL) and 23,603,218 Class C shares (GOOG). At nearly $36.6 billion in combined market value between these two share classes, Alphabet has leapfrogged BofA and Coca-Cola to become Berkshire's third-largest holding.
Similar to his predecessor, Abel appreciates companies with sustainable moats. Alphabet holds a virtual monopoly on internet search, with a greater than 91% share of global search engine traffic in July. It also owns streaming platform YouTube, the second-most-visited social site on the planet.
GOOGLE'S $GOOGL Q2 EARNINGS HIGHLIGHTS
- Google total revenue: +24% YoY
- Search & Other Ads: +17% YoY
- Google Cloud: +82% YoY, backlog now at $514B
- 1P Model APIs: ~22B tokens per minute, up from 16B+ last quarter
- YouTube Ads: +13% YoY
- Gemini App: 950M monthly active... pic.twitter.com/cUdBZI9a6C
-- Evan (@StockMKTNewz) July 22, 2026
However, it's Alphabet's artificial intelligence (AI) ambitions that Abel may find the most attractive. Integrating generative AI and large language model capabilities into Google Cloud has rapidly accelerated sales growth for the world's No. 3 cloud infrastructure service platform. High-margin sales in this segment jumped 82% in the June-ended quarter.
It would appear that Alphabet is to Greg Abel what Apple was to his predecessor, Warren Buffett.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Bank of America is an advertising partner of Motley Fool Money. Sean Williams has positions in Alphabet and Bank of America. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway. The Motley Fool recommends Capital One Financial, Constellation Brands, Delta Air Lines, and Kroger. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Constellation Brands, Inc.

Sign up and unlock all the capabilities of the AI-screener