GS

Nvidia NVDA) stock has surged more than 7% on Thursday after the AI chip giant delivered another blockbuster quarterly report yesterday evening and, more importantly, gave Wall Street considerably more confidence that its extraordinary growth can extend well into next year. Ahead of the report, several key questions surrounded Nvidia's Q2 results: whether its Vera Rubin platform was ramping on schedule, if gross margins could remain near 75%, and how much of the massive AI infrastructure buildout Nvidia would ultimately have to finance itself. The answers were mostly encouraging, although investors still have a few risks to weigh before chasing today's rally. Image Source: Zacks Investment Research Nvidia posted Q2 revenue for its current fiscal 2027 of $96.22 billion, soaring 106% from $46.74 billion in the prior year quarter and comfortably topping estimates of $91.79 billion. Adjusted net income came in at $53.95 billion, or earnings of $2.22 per share, up 120% year over year and beating Q2 EPS expectations of $2.09 by 6%. Data Center sales were the standout once again, jumping 117% to a record $89 billion. Image Source: Zacks Investment Research Even more impressive was Nvidia’s outlook. The chip giant expects Q3 revenue of $108 billion, plus or minus 2%, with no Data Center compute sales from China included in that forecast. Management also offered a preliminary expectation for roughly 70% revenue growth in fiscal 2028, despite anticipating that supply will remain constrained through the end of that reporting year. That longer-term outlook arguably provided the biggest catalyst for today's rally, as Wall Street had been bracing for a much steeper slowdown in Nvidia's growth rate. To that point, its Q3 revenue forecast came in above analyst consensus estimates of $102 billion (Current Qtr below), while the FY28 preliminary revenue forecast is well ahead of Zacks current projections of $553.24 billion or 42% growth. Image Source: Zacks Investment Research The Vera Rubin ramp also provided the confirmation investors were looking for. Production shipments began earlier this month, and Nvidia says it has already received purchase orders from every major hyperscaler, AI cloud provider, and system original equipment manufacturer (OEM). Management expects Vera Rubin to account for roughly 20% of Data Center revenue in Q3 and believes it could become the fastest product ramp in Nvidia's history. This suggests Nvidia is transitioning from its Blackwell platform to its next-generation AI architecture without the growth pause investors might normally expect during a major product cycle. Profitability remains exceptional, but this was one area where the report was less reassuring. Nvidia maintained a 75% gross margin in Q2, but management expects it to slip to roughly 74% in Q3 and bottom between 71% and 72% in Q4 as surging memory prices increase system costs. Nvidia expects margins to settle around 72%-73% in FY28, with planned price increases beginning to provide some relief early next year. Considering Nvidia's staggering revenue growth, these margins remain enviable. Still, investors should no longer assume that mid-70% gross margins are guaranteed as increasingly complex AI systems push component costs higher. Over the trailing twelve months (TTM), Nvidia’s 74% gross margin has impressively outpaced the S&P 500’s 53% average and has topped its Zacks Semiconductor-General Industry average of 72% Image Source: Zacks Investment Research Nvidia's balance sheet remains formidable. The company finished Q2 with roughly $99 billion in cash and marketable debt and equity securities, while generating $24.1 billion in operating cash flow during the quarter. However, Nvidia is deploying significant amounts of capital across its ecosystem. Non-marketable securities rose to more than $51 billion from $22 billion at the beginning of the fiscal year, while the company purchased $15.8 billion of equity securities during Q2 alone. Its supply and capacity commitments also surged from $119 billion last quarter to roughly $279 billion as Nvidia locks down memory and manufacturing capacity for future demand. That said, Nvidia appears to be finding ways to bring much deeper pockets into the AI buildout. Its partnerships with major investment firms Apollo Global Management APO), BlackRock BLK), Blackstone BX), Brookfield Asset Management BAM), Goldman Sachs GS) and KKR KKR) are intended to mobilize more than $500 billion of third-party capital for AI infrastructure, creating independent pools of financing for Nvidia customers. That could gradually shift more of the burden away from Nvidia's own balance sheet, although investors should continue monitoring its guarantees, strategic investments, and other commitments as the AI spending boom grows larger. Despite today's rally, Nvidia stock is still trading at just under 24X forward earnings following its impressive Q2 EPS beat. Furthermore, upward earnings estimate revisions after such a strong report and outlook could quickly make Nvidia’s valuation even more appealing. Notably, NVDA is trading near its decade-low forward P/E of 20X and at a nearly 50% discount to its 10-year median of 45X. Image Source: Zacks Investment Research And if you're wondering, NVDA’s return over the last decade is near a staggering 14,500% Image Source: Zacks Investment Research There is considerably more to like about Nvidia following Q2 earnings. The company crushed expectations, issued strong Q3 guidance, provided surprisingly bullish FY28 commentary, and offered concrete evidence that Vera Rubin is already becoming its next major revenue engine. Margin pressure and Nvidia's enormous financial commitments prevent the story from being completely risk-free, and investors don't necessarily have to chase a 7% one-day spike. Still, the rally appears fundamentally supported rather than simply driven by post-earnings enthusiasm. Most importantly, NVDA now sports a Zacks Rank #2 (Buy), reflecting a favorable earnings-estimate revision outlook. For long-term investors, Nvidia's valuation still looks surprisingly reasonable relative to its growth trajectory, making pullbacks particularly attractive and today's post-earnings rally difficult to bet against. 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Blackstone Inc. (BX) : Free Stock Analysis Report BlackRock (BLK) : Free Stock Analysis Report KKR & Co. Inc. (KKR) : Free Stock Analysis Report Brookfield Asset Management Ltd. (BAM) : Free Stock Analysis Report Apollo Global Management Inc. (APO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

(Bloomberg) -- Wall Street is eagerly anticipating Nvidia Corp.'s (NVDA) earnings on Wednesday afternoon, not so much for what the numbers will say about the chip giant, but for what they mean to artificial intelligence investors and the market itself. Most Read from Bloomberg Lutnick's Intervention in Canada Talks Draws Praise, Blame Apple Gears Up to Launch Its First New Mac Mini in Two Years Xi Signals Defiance as US Threatens Sanctions Over Iran Help US Weighs More Trade Measures Against Canada After Retaliation Bessent's Mentor Druckenmiller Calls Bond Buying a Mistake "Nvidia is the best barometer for AI spending," said Rob Conzo, chief executive officer of the Wealth Alliance, which owns Nvidia shares in several portfolios. "It will help determine if hyperscalers are still accelerating, from an infrastructure perspective, or if they're becoming more disciplined." The company's shares have been on a wild ride this year, sinking through the winter, then soaring through the spring, and bouncing around all summer. They're coming off a seven-day losing streak, matching the longest since 2019, in which they lost 7.5%. And that follows a 19% leap from late July through mid-August. All told, Nvidia is up 14% in 2026, a decent showing but still a far cry from its past performance. At this time last year, the stock had gained 34%, and in 2024 it was soaring more than 150%. The reason is hardly a secret, with investors increasingly cautious about the durability of the AI trade with inflation remaining high, interest rates rising and geopolitical risks all over the place, whether it's the US's military and economic war with Iran or its trade war with Canada. The tech-heavy Nasdaq 100 Index suffered its worst month in more than a year in July, falling 6.6% as investors dumped the shares of companies exposed to the AI buildout amid concerns about how much longer the heavy spending would last. But since its July 29 trough, the index has regained much of that lost ground, led by memory and storage companies like Sandisk Corp. and chipmakers such as Marvell Technology Inc. Wall Street expects Nvidia to deliver stellar results for the fiscal second quarter, which ended July 31. Analysts project that revenue nearly doubled from a year ago, which would be the fastest pace in two years, as did net income, according to data compiled by Bloomberg. That, however, isn't what the market is focused on. Rather, investors want to hear what Chief Executive Officer Jensen Huang has to say about capital spending by its biggest customers, future demand and a spate of new financing deals that involve Nvidia. Price increases will also be top of mind after some of the company's customers were told that the cost of servers with its AI chips will rise more than 15% in some cases, due to surging memory costs. "This will be a very interesting report, but it isn't so much about the numbers," Conzo said. "The forward guidance discussions will be far more in view." Earlier this month, Nvidia said it's partnering with Wall Street firms including Goldman Sachs Group Inc., BlackRock Inc. and Apollo Global Management Inc. to provide $500 billion in financing for AI infrastructure. Nvidia also agreed to spend as much as $105 billion to back a data center campus in Ohio that will be leased by OpenAI. "They're going to need to discuss those two big partnerships or agreements in good detail and sort of calm the market's fears around the circularity of financing," said Shaon Baqui, a senior equity analyst at Janus Henderson, which holds a substantial position in Nvidia. The big questions from investors are how much of Nvidia's revenue is being driven by its own financing and if it's creating or bringing forward demand. Huang's comments alone likely won't be enough to resolve some of the issues the market is having with AI investments at the moment, according to Daniel Pilling, portfolio manager at Sands Capital Management, which owns the stock. "It's going to be a really important quarter for them, not because of what they're doing on the balance sheet, but what they're doing off the balance sheet," said Brian Mulberry, chief market strategist at Zacks Investment Management, which holds Nvidia shares. "It effectively makes Jensen Huang kind of like the pope of AI. He gets to bless any of these deals." Even with a market capitalization of more than $5 trillion, the biggest in the world, Nvidia's equity valuation has been steadily eroding this year. At roughly 19 times earnings expected over the next 12 months, the stock is close to the cheapest it has been since late 2018, before AI exploded and when the chipmaker's market value was less than $100 billion. "Nvidia isn't the most exciting part of the market, or even the AI trade, anymore," said Randy Hare director of equity research at Huntington National Bank, which owns the stock. "Right now the tightness is in the memory space, the optical area, energy. Momentum is shifting from semis to other parts of infrastructure, and from there it could shift to hyperscalers again." In terms of trading into the earnings, Nvidia shares haven't performed well after its results over the last few quarters, falling the day after five of its last six reports, according to data compiled by Bloomberg. The options market is pricing in a roughly 5% swing in either direction. Of course, the shares could get a boost from a strong report and forecasts that calm investors' nerves, potentially reinvigorating the broader AI trade. Wall Street will be listening for updates on Nvidia's Vera Rubin and Blackwell chip sales as well as its outlook for gross margins. "Their stock in my view is at a bit of a nexus, like a bit of a turning point," said Melissa Otto, head of technology, media and telecommunications research at Visible Alpha. "We're going to get a lot more visibility, hopefully, and commentary around Rubin and the performance of Blackwell." Tech Chart of the Day Top Tech Stories Meta Platforms Inc. and state attorneys general have discussed a possible mid-trial settlement of a blockbuster case accusing the company of deliberately designing Facebook and Instagram to addict teens, people familiar with the matter said. OpenAI said that its new Jalapeno chips performed better than Nvidia's current lineup during testing, underscoring the company's progress developing AI processors in-house. SoftBank Group Corp. is talking with investment banks about a potential $10 billion to $20 billion bond offering to help refinance a loan for its investment in US tech giant OpenAI, according to people familiar with the matter. Apple announced upgraded Mac mini and Mac Studio desktop computers, giving the in-demand machines major processor upgrades. Earnings Due Earnings Postmarket: --With assistance from Subrat Patnaik and David Watkins. Most Read from Bloomberg Businessweek The Diamond Industry's Old Guard Wants You to Buy 'Natural' Plus-Size Clothes Are Disappearing at Retailers in GLP-1 Era Drones, Balloons and Sound Waves: New Ways to Fight the World's Fires Moldy Peanuts Can Be Deadly. The Solution Is More Mold New York's Israeli Restaurants Are Doing Better Than You Might Think ©2026 Bloomberg L.P.

Morgan Stanley MS delivered a strong first half of 2026, with net revenues rising 21% year over year to $41.93 billion and net income jumping 42% to $11.15 billion. Earnings per share increased 46% to $6.90, while the return on tangible common equity (ROTCE) improved to 26.8% from 20.6% in the prior-year period.The Institutional Securities (IS) segment was the major growth driver, supported by robust investment banking (IB) and trading activity. IB revenues rose 47% year over year, aided by stronger M&A advisory and underwriting volumes, while trading revenues increased 36% on higher client activity. The momentum was particularly evident in the second quarter of this year, when IS segment revenues jumped to a record $11 billion.The Wealth Management (WM) segment also delivered solid growth in the six months ended June 30, 2026, supported by higher asset levels, fee-based inflows, lending activity and client engagement. Second-quarter revenues reached a record $8.9 billion, while the business attracted $148 billion of net new assets. Investment Management (IM) also benefited from higher assets under management (AUM) and positive flows.Overall, Morgan Stanley’s improving efficiency, strong asset gathering and solid capital position drove its impressive first-half results. Supported by this robust performance, along with improving investor sentiment, resilient U.S. consumer spending and continued heightened market activity, MS shares have gained 22.1% year to date, outperforming the S&P 500 Index’s 11.5% growth and the industry’s 11% rise.If we compare MS’ price performance with two of its closest peers, JPMorgan JPM and Goldman Sachs GS, it appears that MS has outperformed both JPMorgan and Goldman Sachs. So far this year, shares of JPMorgan have gained 10.7% and Goldman Sachs stock has rallied 20.5%. Image Source: Zacks Investment Research Given the impressive price performance, investors might be tempted to invest in the MS stock now. But before making any investment decision, investors should assess whether there is further upside left in the stock despite risks from market volatility. In order to understand this, let us dig deep into the company’s fundamental strengths and growth prospects. Improving Diversification: Morgan Stanley has continuously been trying to reduce its reliance on capital markets, which it has been achieving by expanding wealth and asset management. Also, it has been using acquisitions (Eaton Vance, E*Trade Financial, Shareworks and EquityZen) to broaden its mix and have a more balanced revenue stream across market cycles. The wealth and asset management businesses continue to broaden the company’s revenue base and deepen client relationships.Both businesses’ aggregate contribution to total net revenues jumped to almost 54% in 2025 from 26% in 2010. The WM segment’s total client assets witnessed a five-year (2020-2025) compound annual growth rate (CAGR) of 13%, while the IM segment’s total AUM saw a CAGR of 19.4%.As of June 30, 2026, total client assets across both segments were $10 trillion, reaching a milestone. This progress reflects strong momentum across Morgan Stanley’s advisor-led, workplace and self-directed platforms, while highlighting its expanding scale in the retirement savings market. The trend is likely to continue in the near term as the operating environment becomes more favorable.IB Recovery: After the deal slowdown that weighed on results in 2022 and 2023, Morgan Stanley's IB franchise continues to recover as issuance and strategic activity improve. IB fees rose 35% in 2024 and 23% in 2025 as boardroom confidence improved and issuance reopened. As mentioned above, the upward momentum carried into the first half of 2026.Looking ahead, the company is well-positioned to benefit from a healthier deal environment, supported by a robust and diversified pipeline across regions and sectors. Momentum is expanding beyond the Americas into Asia and EMEA, while active M&A and IPO markets, together with the company’s strong competitive position, should support further growth as the macroeconomic backdrop evolves.  Expanding Global Reach: Morgan Stanley’s alliance with Mitsubishi UFJ Financial Group continues to enhance its competitive position in Japan through combined research, sales and execution and coordinated underwriting. This supports a durable franchise in a key market and helps extend coverage across the region.Asia revenues were $9.42 billion in 2025, up 23% year over year. The momentum carried into the first six months of 2026, aided by stronger client engagement, favorable market conditions and higher prime brokerage activity in the region.The company's global platform is increasingly relevant as capital markets activity broadens outside the United States and across Japan, India, China, Korea, Taiwan and Hong Kong. Continued investment in regional leadership and collaboration should support wallet share gains across Asia's capital markets and wealth opportunity set.Robust Balance Sheet Position: As of June 30, 2026, the company had long-term debt of $383.2 billion, with $34.3 billion expected to mature over the next 12 months. The company’s average liquidity resources were $404.1 billion as of the same date.Given its solid liquidity position and earnings strength, Morgan Stanley has been engaged in efficient capital distribution activities, through which it enhances shareholder value.Following the clearance of the 2026 stress test, the company increased its quarterly dividend 15% to $1.15 per share. Before this, the company had hiked its quarterly dividend 8% in 2025. Also, its board of directors has reauthorized a multi-year share repurchase program of up to $20 billion, without an expiration date. Management continues to emphasize disciplined capital allocation, with a preference for organic investment, capital returns and selective bolt-on acquisitions only where strategic and cultural fit are strong. On a valuation basis, shares of Morgan Stanley appear to be trading at a premium relative to the industry. The company’s forward 12-month price/earnings (P/E) ratio of 16.72 is above the industry average of 13.97. Image Source: Zacks Investment Research JPMorgan has a P/E (F12M) ratio of 14.28, and Goldman Sachs has a forward 12-month P/E ratio of 14.89. Thus, Morgan Stanley is overvalued compared with its two closest peers as well.If we look at Morgan Stanley’s earnings estimate revisions, it appears that analysts are optimistic regarding the company’s growth. Over the past 30 days, the Zacks Consensus Estimate for the company’s 2026 and 2027 earnings has been revised upward. The earnings estimate for 2026 of $12.79 indicates a rise of 25.3% from that reported in the previous year. The 2027 estimate of $13.06 suggests year-over-year growth of 2.1%. Image Source: Zacks Investment Research Morgan Stanley’s continued efforts to reduce the dependence on volatile capital markets-driven revenues by strengthening its wealth management and investment management businesses will continue to support growth in the long run because these segments generate more stable, recurring fee income.Its solid balance sheet and strong capital position provide flexibility to invest in growth initiatives, pursue strategic opportunities and return capital to shareholders.The company’s premium valuation seems justified by its business transformation and strong earnings stability. With multiple growth levers in place, including expansion in fee-based businesses, disciplined cost management and strategic investments, the company appears well-positioned to sustain financial performance and deliver stable revenue growth over the long term, making it an attractive investment option now.Currently, Morgan Stanley sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 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 Morgan Stanley (MS) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Goldman Sachs Group has delivered a very strong 241.0% share price gain over the past three years, and its current checks suggest the stock is closer to fairly valued on intrinsic value while earnings multiples still lean supportive. A 241.0% return over three years puts Goldman Sachs Group among the stronger performers in its sector, which makes the current valuation level more important for anyone considering new capital going in. Recent moves to expand asset management through acquisitions such as LCN Capital Partners and NEOS Investments can support expectations for fee based earnings. At the same time, regulatory and reputational risks around areas like complex financing structures and investigations may influence how much investors are willing to pay for that growth. On Simply Wall St's broader checks, Goldman Sachs Group scores 4 out of 6 on valuation, which points to a mixed picture rather than a clear bargain or an obviously expensive stock. The issue now is whether Goldman Sachs Group's current price already reflects what the Excess Returns intrinsic value estimate and the earnings multiple signals are implying. Goldman Sachs Group delivered 43.1% returns over the last year. See how this stacks up to the rest of the Capital Markets industry. The Excess Returns model estimates what shareholders in Goldman Sachs Group earn over and above a required return on equity. For Goldman Sachs Group, the model uses a book value of $362.05 per share and a stable book value estimate of $406.56 per share, both based on analyst forecasts. Those support a stable earnings figure of $78.12 per share against a cost of equity of $37.77 per share, which implies excess return of $40.34 per share and an average return on equity of 19.21%. Using these inputs, the Excess Returns model points to an intrinsic value of about $1,128 per share. That is roughly 8.1% above the current share price, so the stock screens as modestly undervalued rather than extremely cheap. The recent agreements to acquire NEOS Investments and LCN Capital Partners help explain why the market still assigns a premium multiple. Despite that interest, the shares trade below what the model implies. Overall, the Excess Returns framework suggests Goldman Sachs Group stock appears close to fairly valued, with only a small margin between modelled intrinsic value and the market price. Goldman Sachs Group is fairly valued according to our Excess Returns, but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Goldman Sachs Group. The P/E ratio is a useful way to see how much you are paying for each dollar of Goldman Sachs Group earnings. Goldman Sachs Group currently trades on a P/E of about 15.7x, which is well below both the Capital Markets industry average of roughly 38.5x and a peer average of about 30.0x. On Simply Wall St's fair multiple framework, a P/E of about 19.3x looks reasonable for Goldman Sachs Group given its profile. That is still above the current 15.7x level, which indicates that the stock is trading at a discount to what this model suggests investors might typically be prepared to pay for its earnings. On the P/E multiple, Goldman Sachs Group stock appears undervalued relative to both sector benchmarks and the modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Goldman Sachs Group valuation checks leave off and spell out what mix of future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's price. Each one turns Goldman Sachs Group's implied fair value into a clear thesis about the business that you can track over time on the Community page as new information comes through. Community views on Goldman Sachs Group are split between a higher growth, higher margin future and a more measured path with tighter valuation room. Bull case: 22% undervalued Read the full Bull Case to see why Goldman Sachs Group could be undervalued Bear case: 6% overvalued Read the full Bear Case to see why Goldman Sachs Group could be overvalued Do you think there's more to the story for Goldman Sachs Group? Head over to our Community to see what others are saying! For Goldman Sachs Group, the Excess Returns intrinsic value estimate and the market P/E both point to a stock that is not obviously expensive, with the model suggesting modest upside and the multiple implying the shares trade at a discount to peers. The broader checks still look mixed, so the valuation case is not one way and depends on how much weight you place on intrinsic value versus relative earnings pricing. The crux for investors is whether current concerns around regulation, reputation and the asset management expansion justify that discount or whether the market is underestimating the earnings power Goldman Sachs Group can sustain over time. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

SAN DIEGO, Aug. 24, 2026 /PRNewswire/ -- Petco (Nasdaq: WOOF), the retailer "where the pets go" to find everything they need to live their best lives, today announced that its financial results for the second quarter fiscal 2026 will be released at approximately 4:00 p.m. Eastern Time on September 2, 2026. The company will host a conference call at approximately 4:15 p.m. Eastern Time to discuss the results. A live webcast of the conference call, as well as the earnings release and earnings presentation, will be available on the company's Investor Relations page at https://ir.petco.com/news-and-events/events-and-presentations. A replay of the webcast will be available through the same link approximately two hours after the conference call. Upcoming Investor Conferences The company also announced that management will participate in the following upcoming investor conferences. Goldman Sachs Global Consumer and Retail Conference 2026 Management will participate in a fireside chat on Monday, September 14th, 2026 at 1:20pm ET. A live webcast of the fireside chat will be available on the company's Investor Relations page at https://ir.petco.com/news-and-events/events-and-presentations. Wells Fargo Consumer Conference 2026 Management will participate in meetings on Tuesday, September 22nd, 2026 and Wednesday, September 23rd, 2026. About Petco: We're proud to be "where the pets go" to find everything they need to live their best lives for more than 60 years — from their favorite meals and toys, to trusted supplies and expert support from people who get it, because we live it. We believe in the universal truths of pet parenthood — the boundless boops, missing slippers, late night zoomies and everything in between. And we're here for it. Every tail wag, every vet visit, every step of the way. We nurture the pet-human bond in the aisles of more than 1,500 Petco stores across the U.S., Mexico and Puerto Rico. Customers experience our exclusive selection of pet care products, services, expertise and membership offerings in stores and online at petco.com, and on the Petco app. In 1999, we founded Petco Love. Together, we support thousands of local animal welfare groups nationwide and have helped find homes for over 7 million animals through in-store adoption events. View original content to download multimedia:https://www.prnewswire.com/news-releases/petco-to-host-second-quarter-2026-earnings-conference-call-on-september-2-2026-and-participate-in-upcoming-investor-conferences-302857815.html

Nvidia will report its second-quarter (Q2) earnings for the fiscal year 2027 on August 26, and expectations are high. As we await earnings, we need to consider two important things about the stock. The first thing is that the stock dropped on the day following earnings in each of the last four quarters, despite strong results. It is starting to look like a pattern. The second thing is that, according to MarketBeat, 52 of the 54 analysts covering Nvidia stock rate it a buy. Two give a hold rating. The average price target is $308.01. Nvidia closed at $214.72 on August 21, implying a compelling 43.45% upside. Given that the stock often drops despite strong earnings and that analyst consensus is a buy with significant upside, the question naturally arises: buy before earnings, or wait until after earnings and buy on the dip the next day? That is a tough question to answer. In a research note shared with me, Goldman Sachs analyst James Schneider and his team outlined their views on what might happen and what to watch for. Schneider expects “a solid quarter with meaningful upside to guidance supported by tight GPU supply/demand trends.” The caveat here is that, as the stock soared in August, this might already be priced in. He noted this by saying that the bar for the stock is elevated, given its more than 12% move in two weeks. He reiterated a buy rating for Nvidia and a price target of $285, based on a 30x multiple. The analysts noted that their EPS estimates for Q2 and Q3 are 6% and 12% above the Wall Street consensus. So, despite the above-consensus EPS estimates, Goldman Sachs’s price target is slightly below the average, but still implies a big upside of 32.73%. Schneider’s team believes that Nvidia stock trades at a steep discount to what they view as fair value. The analysts added that the stock could continue to re-rate, and three factors could help. They need to see improving profitability metrics at hyperscalers, which would support sustained spending growth. Nvidia needs to demonstrate measured capital outlays in support of customer financing platforms. This would ease fears about vendor/circular financing. The company also needs to reiterate its commitment to strong buybacks and dividends. Details on the customer financing platform and its impact on capital allocation Details of the Vera Rubin AI platform rollout, or Rubin ramp, in the second half of 2026 Gross margin trends and input costs CPU demand driven by Agentic AI Competitive trends The insatiable demand for Nvidia GPUs is a double-edged sword, as Nvidia is facing supply constraints. This is making it more difficult for Nvidia to beat and raise every quarter. Additionally, while hyperscalers keep raising their capital expenditure plans, it is not certain they will do so midyear, which is not good for the next two quarters. For Nvidia to soar after earnings, it would need to drop something material, beyond a standard beat-and-raise. Nvidia significantly increased dividends in its previous earnings report, but that didn’t prevent the next-day drop, even as Bank of America raised its price target. Another part of the twist is that the huge demand driving GPU prices higher and higher, as well as other components of the AI boom, is putting too much pressure on some of Nvidia’s customers’ financials. With very significant customers having trouble financing their insatiable demand, fears of vendor financing are growing, and Nvidia’s commitments are not helping ease them. Related: Michael Burry says Nvidia rival is quietly getting serious On August 17, Nvidia agreed to provide a guarantee of up to $105 billion to help OpenAI lease a data center in Ohio that is being developed by SoftBank-owned SB Energy, Reuters reported. Nvidia said it will guarantee a portion of the lease and power payments and commit to ensuring the site retains a minimum value. On August 10, Nvidia teamed up with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to create AI Compute Infrastructure Financing Platforms. The idea behind this project is to mobilize over $500 Billion of third-party capital. This platform is the one Goldman Sachs wants addressed on the earnings call. So, if we read a little between the lines, the twist is that while Goldman Sachs sees Nvidia hitting $285 in the next 12 months and forecasts a beat-and-raise, Nvidia is more likely to dip the day after than to soar, unless it drops a big piece of news. A fairly similar sentiment is shared by Morgan Stanley analysts. Hyperscalers could slow down their AI infrastructure spending. Nvidia could lose market share due to increased competition. Nvidia could suffer erosion of its profit margins due to increased competition. Supply constraints Related: Bank of America’s latest Nvidia alert is a must-read for worried investors This story was originally published by TheStreet on Aug 23, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

When you buy through links on our articles, Future and its syndication partners may earn a commission. The main equity indexes rebounded from Thursday's sharp sell-off, but all three were down for the week. The trend for Treasury yields across the maturity spectrum reflects growing concerns about persistent inflation, government debt and how the Federal Reserve will respond. At the closing bell on Friday, the blue-chip Dow Jones Industrial Average had added 1.0% to 53,277, but still finished the week lower by 0.8%. The tech-heavy Nasdaq Composite was up 0.4% to 26,180, narrowing its weekly decline to 2.1%. The S&P 500 rose 0.4% to 7,674, though the broad-based index lost 1.4% this week. "It's not surprising that the S&P 500 pulled back modestly after its early-August breakout to new record highs," observes Daniel Skelly, head of research and strategy for Morgan Stanley Wealth Management. "But the move may have taken on additional significance in some circles, given the role tech softness played." Skelly notes that although we may see more volatility in the near term due to seasonal factors, "the longer-term AI capex story remains positive." Meanwhile, the bond market continues to adjust to a Treasury Department plan announced on Wednesday to increase buybacks of longer-dated debt. The yield on the 2-year Treasury was up to 4.232% vs 4.185% on Thursday. The 2-year was at 4.171% last Friday. The 10-year Treasury ticked up to 4.736% from 4.698% on Thursday and 4.696% a week ago. The 30-year Treasury climbed to 5.274%, up from 5.237% yesterday and 5.266% at the end of last week. Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day. Fed Chair Kevin Warsh will deliver the keynote address at the Kansas City Fed's annual Jackson Hole Economic Symposium on Friday, August 28, the highlight of next week's economic calendar. According to University of Pennsylvania Wharton School Professor Patrick Harker, a former president of the Philadelphia Fed, "Warsh is going to have to address the elephant in the room, which is inflation." Nvidia (NVDA, -1.0%) will offer fresh evidence for Skelly and others who see more support for stocks from AI capex when the chipmaker takes another turn on the earnings calendar after the closing bell next Wednesday. Wall Street expects management to report year-over-year earnings growth of 99.0% on annual revenue growth of 97.0%. "Notably," Susquehanna analyst Christopher Rolland writes in a preview of Nvidia's report, "AI demand is supported by increasing hyperscale capex plans. The top five hyperscalers are now expected to nearly double capex spend in 2026." Track all markets on TradingView Rolland also highlights a constructive outlook for 2027, when capex is expected to exceed $1 trillion. "We still view Nvidia as having one of the largest opportunity sets ahead," the analyst concludes. Indeed, as Louis Navellier of Navellier & Associates writes, "Due to the anticipation of Nvidia's spectacular quarterly results, plus the fact that the financial media will be all excited about their annual trip to Jackson Hole for the annual Kansas City Fed Conference, investor optimism is expected to be sky-high next week." Robinhood Markets (HOOD, +12.9%) led S&P 500 stocks higher on Friday after President Donald Trump advocated for passage of federal legislation that would establish a regulatory framework for digital assets such as bitcoin during a White House summit on Thursday. "We need Congress to take the next step by passing the Clarity Act — a fair version of the Clarity Act," Trump said in remarks prepared for the event. "It's a very, very powerful structured legislation which will keep us ahead of China, keep us ahead of everyone else, will open the door to the next wave of innovations and innovators." Track all markets on TradingView Crypto trading platform Coinbase Global (COIN, +8.2%) and bitcoin treasury company Strategy (MSTR, +6.1%) have also rallied on the president's recent endorsement of a broad bill to support digital assets. Moderna (MRNA, +8.9%) was the second-best performer in the S&P 500, following its 177% rise on Wednesday and 24% fall on Thursday with another dramatic move. Merck (MRK, +2.4%), Moderna's partner on the melanoma cancer vaccine that triggered this week's volatility, was second only to Goldman Sachs (GS, +3.7%) among Dow Jones stocks. Earnings Calendar and Analysis for Next Week What to Look Out for in Economic Data Next Week The Best Vanguard Bond Funds to Buy

It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature. In this regard, we ran a screener that yielded stocks Centene CNC, Tenet Healthcare THC, Fortinet FTNT, Unity Software U and The Goldman Sachs Group GS as the likely winners on the earnings beat potential. Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn’t tell you if earnings growth has been exhibiting a decelerating trend. Also, seasonal fluctuations sometimes come into play. If a company’s Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company. On the other hand, after much brainstorming and analysis of companies’ financials and initiatives, Wall Street analysts project earnings of companies. They in fact club their insights and a company’s guidance when deriving an earnings estimate. Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher. Now, finding stocks that have the potential to beat on the bottom line may be investors’ dream but not an easy job. One way to do this is to look at the earnings surprise history of the company. An impressive track record in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earnings beat in its next release. In order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters. Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again. Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slightly higher by setting the average earnings surprise for the last four quarters at 20%. Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger. In addition, we place a few other criteria that push up the chance of a positive surprise. Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through. Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat to happen, as per our proven model. In order to zero in on those that have long-term growth potential and high trading liquidity, we have added the following parameters too: Next 3–5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock’s long-term growth prospects. Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity. A handful of criteria has narrowed down the universe from over 7,700 stocks to only 16. Here are five out of 16 stocks: Centene: The Zacks Rank #1 company has established itself as a national leader in healthcare services. You can see the complete list of today’s Zacks #1 Rank stocks here. The average earnings surprise of CNC for the past four quarters is 151.28%. Tenet Healthcare: The Zacks Rank #1 company is an investor-owned healthcare services company, which owns and operates general hospitals and related healthcare facilities for urban and rural communities in numerous states, and has offices in California and Florida. The average earnings surprise of THC for the past four quarters is 22.70%. Fortinet:The Zacks Rank #1 company is a leader in cybersecurity, driving the convergence of networking and security. The average earnings surprise of FTNT for the past four quarters is 20.34%. Unity Software: The company provides a platform to develop, deploy and grow games and interactive 3D experiences across mobile, PC, console and extended reality. The stock has a Zacks Rank #2. The average earnings surprise of U for the past four quarters is 12.54%. The Goldman Sachs Group: It is a leading global financial holding company providing investment banking, securities, investment management, and consumer banking services to a diversified client base. The stock has a Zacks Rank #1. The average earnings surprise of GS for the past four quarters is 20.42%. 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 Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report Centene Corporation (CNC) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

(Bloomberg) -- Anthropic PBC is telling prospective investors its second-quarter revenue jumped at least 14-fold versus the same period a year ago, according to documents seen by Bloomberg News. Most Read from Bloomberg US Readies Unprecedented ‘Economic Isolation’ Plan for Iran Selena Gomez Accused of Fraud by Mental-Health Startup Investors Costliest US Bond Sale Since 2001 Is Investor Warning to Bessent OpenAI’s Annualized Revenue Tops $40 Billion Ahead of IPO Walter Sells Lakers, Seeks More Cash to Pay Loans Amid DOJ Probe The Claude chatbot maker reported a preliminary revenue figure of more than $11.5 billion in its latest completed quarter, compared to $787 million in the corresponding period in 2025, and $4.73 billion in the first quarter of this year, the documents show. The second quarter of 2026 saw Anthropic report positive adjusted operating income, according to the documents. Deliberations are ongoing and the figures could be revised. A representative for Anthropic declined to comment. The rapid growth comes as the company battles its longtime rival OpenAI to win over corporate customers. Once considered an underdog in the artificial intelligence race, Anthropic has seen a surge in professionals adopting its software to streamline tasks including coding. Anthropic’s annualized revenue or run rate crossed $47 billion in May. OpenAI has an annual run rate of over $40 billion, Bloomberg News reported, though the two figures may not be calculated the same way. The company is meeting with investors ahead of its potential mega-IPO, people familiar with the matter said in July. Anthropic filed confidentially for a listing, and is working with Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. on the IPO, Bloomberg News has reported. Anthropic is seeking to tap the public market’s ample funding capacity to maintain its lead over OpenAI and others, as AI companies spend hundreds of billions of dollars to develop the most cutting-edge models. An IPO this fall would see Anthropic debut not only before OpenAI but also before DeepSeek, the Chinese AI firm that has been grabbing an increasing share of the market for the technology. DeepSeek is preparing for an IPO and could file as soon as this year, people familiar with the matter have said. The AI race has fired up the IPO market, with listings this year raising $256.4 billion, excluding blank-check firms and other financial vehicles, according to data compiled by Bloomberg. That’s the most raised in a year since 2021, the data show. --With assistance from Shirin Ghaffary. Most Read from Bloomberg Businessweek The Optimization Backlash Has Begun The Midwest City Keeping the American Dream Alive for First-Time Homebuyers The Steamy, Magical and Now Very Lucrative Romantasy Business AI Music Startup Suno Bets Anyone Can Be a Rock Star With EV Sales Slowing, Hybrid Cars Are Hot Again ©2026 Bloomberg L.P.

(Bloomberg) -- Chinese tech firms’ early earnings are giving hardware stocks renewed momentum, while internet platforms still struggle to show a full consumer‑demand recovery. Most Read from Bloomberg Selena Gomez Accused of Fraud by Mental-Health Startup Investors Anthropic in Talks to Buy AI Startup Decart for $6 Billion Walter Sells Lakers, Seeks More Cash to Pay Loans Amid DOJ Probe Phoebe Gates Knew Phia Shopping App Took Credit for Sales It Didn’t Drive Costliest US Bond Sale Since 2001 Is Investor Warning to Bessent Shares of Semiconductor Manufacturing International Corp. climbed as much as 6.4% in Hong Kong on Friday after the chipmaker reported earnings that beat estimates and a stronger-than-expected gross margin outlook. But online retailer JD.com Inc. fell more than 10% after posting its first quarterly revenue decline since listing in 2014. Along with Meituan, JD.com was among the biggest drags on the Hang Seng Tech Index, which slid 1.6%. Since late June, investors have increasingly shifted into internet and e-consumer stocks as the AI rally cooled, reversing first‑half trends. Early reads on this week’s earnings point to their preference toward AI stocks possibly regaining strength, pressuring internet shares as more results come due. “Investors generally believe spending in AI hardware by Chinese firms will continue to grow, hence funds are switching out from non-AI names, e.g. JD, despite strong bottom-line growth and share price dips,” said Stanley Tang, senior portfolio manager at Sumitomo Mitsui DS Asset Management. Further underscoring investors’ durable appetite for AI hardware stocks, newly listed memory-chip maker CXMT Corp. on Thursday overtook internet giant Tencent Holdings Ltd. as the world’s most valuable Chinese company. Chinese internet firms also have vowed heavy AI spending, but their post‑earnings stock performance partly shows concerns about the pace of such investments. Tencent’s shares fell Thursday despite reporting solid growth for advertising and mobile games, as Goldman Sachs Group Inc. analysts noted that AI spending was higher than expected. Not all hardware stocks did well. Hua Hong Grace Semiconductor Ltd. plunged Friday after a profit miss. Meituan and Baidu Inc. may provide the next major test of whether investors rotate back into internet stocks, or keep favoring AI-linked players, with earnings expected on Friday and Aug. 18, respectively. Most Read from Bloomberg Businessweek The Optimization Backlash Has Begun AI Music Startup Suno Bets Anyone Can Be a Rock Star The Midwest City Keeping the American Dream Alive for First-Time Homebuyers The Steamy, Magical and Now Very Lucrative Romantasy Business With EV Sales Slowing, Hybrid Cars Are Hot Again ©2026 Bloomberg L.P.