Q2 Earnings Season Arrives: Can Results Match Upbeat Expectations?

The Q2 earnings season gets going in earnest this week, with almost 70 companies on deck to report results, including 29 S&P 500 members. The big banks dominate this week’s reporting docket, but we also have several bellwethers from other sectors reporting, including Netflix, Johnson & Johnson, UnitedHealth Group, United Airlines, and others.

If you’ve been following our earnings commentary over the past year, you’re already familiar with the "improving earnings narrative" we keep talking about. In plain English: when you look at the S&P 500 as a whole, aggregate profit estimates are consistently trending upward.

For over a year, the Tech sector single-handedly carried the torch for these upward revisions. Recently, though, the rally has found reinforcements. The Energy and Basic Materials sectors have vigorously joined the party, largely thanks to a geopolitical bump from developments in the Persian Gulf back in early March.

In fact, the shift in Energy has been spectacular—Q2 earnings estimates for the sector have roughly doubled since April. Utilities and Finance are also enjoying a nice lift, seeing their Q2 expectations climb higher as the quarter progressed.

To give you a bird's-eye view of how this all shakes out, the chart below maps out the total S&P 500 earnings landscape. It highlights current Q2 expectations right alongside actual results from the past four quarters and forecasts for the next four.

Image Source: Zacks Investment Research

As you can see here, total S&P 500 earnings for 2026 Q2 are expected to increase by +23.8% compared to the same period last year on +11.3% higher revenues.

The chart below shows how 2026 Q2 earnings growth expectations have evolved lately.

Image Source: Zacks Investment Research

With Q2 earnings expectations surging by nearly 7 percentage points over the last three months, the bar has been set exceptionally high. Naturally, some market watchers are getting a bit anxious that companies might trip up and miss these loftier targets in the days ahead. If they do come up short, it could spell trouble for a stock market currently sitting right at all-time highs.

We don't view these earnings expectations as overly ambitious. In fact, there is plenty of underlying fundamental momentum to keep driving profit forecasts higher.

The chart below shows the earnings picture on an annual basis.

Image Source: Zacks Investment Research

Big Banks in the Spotlight This Week

JPMorgan JPM, Wells Fargo WFC, Citigroup C and Bank of America BAC will kick off the Q2 reporting cycle for the Finance sector Tuesday morning.

Estimates for the Finance sector, as well as for these money-center banks, have moved higher since the start of the period, reflecting positive momentum in the core commercial banking business, continued strength in the trading business, and overall stable trends in investment banking activities. Aggregate industry data suggests that JPMorgan, Wells Fargo, Citigroup and Bank of America will likely report their best loan growth numbers in almost three years.

For Wells Fargo, the expectation is of +12.3% EPS growth on +4.7% revenue growth, while Q2 EPS for JPMorgan, Bank of America and Citigroup are expected to increase by +11.3%, +27%, and +38.8% from the same period last year, respectively.

For the Finance sector as a whole, total Q2 earnings are expected to increase by +12.6% from the same period last year on +8.4% higher revenues, as the chart below shows.

Image Source: Zacks Investment Research

For full-year 2026, total Finance sector earnings are expected to increase by +11.4% compared to +15.3% earnings growth achieved last year and expectations of +9.4% growth in 2027. Please note that these are record aggregate earnings totals for the Finance sector, as the chart below shows.

Image Source: Zacks Investment Research

Q2 Earnings Season Scorecard

While many in the market will tune in to the Q2 earnings season this week, the reporting cycle is already underway. Through Friday, July 10^th, we have already seen quarterly results from 18 S&P 500 members. All of these 18 index members have reported results for their respective fiscal quarters ending in May, which we count as part of our June-quarter tally.

Total earnings for these 18 index members that have reported results are up +143.3% from the same period last year on +24.3% revenue gains, with 88.9% of the companies beating EPS estimates and 77.8% of them beating revenue estimates.

The comparison charts below put the Q2 earnings and revenue growth rates for these index members in a historical context.

Image Source: Zacks Investment Research

The comparison charts below put the Q2 EPS and revenue beats percentages in a historical context.

Image Source: Zacks Investment Research

We are not drawing any conclusions from these results, given the small sample size at this stage.

For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> A Positive Outlook As Q2 Earnings Season Gets Underway

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Why V.F. (VFC) Outpaced the Stock Market Today

In the latest close session, V.F. (VFC) was up +1.45% at $16.77. The stock outpaced the S&P 500's daily gain of 0.42%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.29%.

Coming into today, shares of the maker of brands such as Vans, North Face and Timberland had lost 5.49% in the past month. In that same time, the Consumer Discretionary sector gained 0.02%, while the S&P 500 gained 2.2%.

The upcoming earnings release of V.F. will be of great interest to investors. The company's earnings report is expected on July 29, 2026. It is anticipated that the company will report an EPS of -$0.22, marking a 8.33% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.68 billion, indicating a 4.85% downward movement from the same quarter last year.

VFC's full-year Zacks Consensus Estimates are calling for earnings of $1.1 per share and revenue of $9.52 billion. These results would represent year-over-year changes of +34.15% and -0.88%, respectively.

Investors might also notice recent changes to analyst estimates for V.F. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, V.F. is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, V.F. is currently trading at a Forward P/E ratio of 15.03. Its industry sports an average Forward P/E of 15.73, so one might conclude that V.F. is trading at a discount comparatively.

Investors should also note that VFC has a PEG ratio of 1.33 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 2.14.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 23% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Astrazeneca (AZN) Stock Dips While Market Gains: Key Facts

In the latest close session, Astrazeneca (AZN) was down 3.85% at $171.61. This move lagged the S&P 500's daily gain of 0.42%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.29%.

Shares of the pharmaceutical witnessed a loss of 2.08% over the previous month, trailing the performance of the Medical sector with its gain of 5.6%, and the S&P 500's gain of 2.2%.

Investors will be eagerly watching for the performance of Astrazeneca in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 27, 2026. The company is expected to report EPS of $2.52, up 15.6% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $15.27 billion, indicating a 5.65% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.28 per share and revenue of $63.45 billion, indicating changes of +12.23% and +8.01%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Astrazeneca. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. Right now, Astrazeneca possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Astrazeneca is presently being traded at a Forward P/E ratio of 17.36. This represents a discount compared to its industry average Forward P/E of 20.47.

One should further note that AZN currently holds a PEG ratio of 1.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Biomedical and Genetics industry currently had an average PEG ratio of 1.63 as of yesterday's close.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 106, finds itself in the top 44% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

M-tron Industries, Inc. (MPTI) Stock Sinks As Market Gains: Here's Why

In the latest trading session, M-tron Industries, Inc. (MPTI) closed at $87.83, marking a -1.82% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.42% for the day. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.29%.

The company's shares have seen a decrease of 7.15% over the last month, not keeping up with the Construction sector's loss of 1.68% and the S&P 500's gain of 2.2%.

Market participants will be closely following the financial results of M-tron Industries, Inc. in its upcoming release. The company is forecasted to report an EPS of $0.47, showcasing a 11.32% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $14.8 million, indicating a 11.45% increase compared to the same quarter of the previous year.

MPTI's full-year Zacks Consensus Estimates are calling for earnings of $2.26 per share and revenue of $59.7 million. These results would represent year-over-year changes of -13.74% and +9.71%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for M-tron Industries, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, M-tron Industries, Inc. boasts a Zacks Rank of #2 (Buy).

In the context of valuation, M-tron Industries, Inc. is at present trading with a Forward P/E ratio of 39.58. This expresses a premium compared to the average Forward P/E of 24.64 of its industry.

It's also important to note that MPTI currently trades at a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Engineering - R and D Services industry currently had an average PEG ratio of 1.59 as of yesterday's close.

The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Rocket Lab Corporation (RKLB) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest trading session, Rocket Lab Corporation (RKLB) closed at $81.04, marking a -1.83% move from the previous day. This move lagged the S&P 500's daily gain of 0.42%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.29%.

Shares of the company have depreciated by 28.08% over the course of the past month, underperforming the Aerospace sector's gain of 1.11%, and the S&P 500's gain of 2.2%.

Analysts and investors alike will be keeping a close eye on the performance of Rocket Lab Corporation in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.03, reflecting a 70% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $232.88 million, up 61.16% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.09 per share and revenue of $925.92 million. These totals would mark changes of +66.67% and +53.86%, respectively, from last year.

Any recent changes to analyst estimates for Rocket Lab Corporation should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 9.3% increase. Rocket Lab Corporation presently features a Zacks Rank of #3 (Hold).

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 53, finds itself in the top 22% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

American Tower (AMT) Surpasses Market Returns: Some Facts Worth Knowing

American Tower (AMT) closed the most recent trading day at $168.59, moving +2.18% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.42%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.29%.

Shares of the wireless communications infrastructure company have depreciated by 12.84% over the course of the past month, underperforming the Finance sector's gain of 4.33%, and the S&P 500's gain of 2.2%.

The investment community will be paying close attention to the earnings performance of American Tower in its upcoming release. The company is slated to reveal its earnings on July 28, 2026. The company is predicted to post an EPS of $2.71, indicating a 4.23% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.71 billion, indicating a 3.09% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.97 per share and a revenue of $10.91 billion, signifying shifts of +1.95% and +2.53%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for American Tower. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, American Tower holds a Zacks Rank of #3 (Hold).

Looking at valuation, American Tower is presently trading at a Forward P/E ratio of 15.04. This expresses a premium compared to the average Forward P/E of 13.1 of its industry.

We can additionally observe that AMT currently boasts a PEG ratio of 0.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.26.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

T. Rowe Price (TROW) Beats Stock Market Upswing: What Investors Need to Know

In the latest trading session, T. Rowe Price (TROW) closed at $118.55, marking a +1.28% move from the previous day. This move outpaced the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.29%.

Coming into today, shares of the financial services firm had gained 8.11% in the past month. In that same time, the Finance sector gained 4.33%, while the S&P 500 gained 2.2%.

Market participants will be closely following the financial results of T. Rowe Price in its upcoming release. The company plans to announce its earnings on July 31, 2026. In that report, analysts expect T. Rowe Price to post earnings of $2.37 per share. This would mark year-over-year growth of 5.8%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.88 billion, indicating a 8.85% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.76 per share and revenue of $7.59 billion, which would represent changes of +0.41% and +3.73%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for T Rowe Price. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.4% higher within the past month. T. Rowe Price is currently a Zacks Rank #3 (Hold).

In the context of valuation, T. Rowe Price is at present trading with a Forward P/E ratio of 11.99. For comparison, its industry has an average Forward P/E of 11.67, which means T. Rowe Price is trading at a premium to the group.

It is also worth noting that TROW currently has a PEG ratio of 5.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial - Investment Management industry was having an average PEG ratio of 1.04.

The Financial - Investment Management industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research