We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Market indexes advanced strongly off a slightly higher open this morning, with news that a deal to end the war in Iran may be within reach. A “letter of intent” to end the war following 30 days of negotiations has sent a surge of positive sentiment through the stock market. The Dow gained +645 points, +1.31%, the S&P 500 grew by +79 points, +1.08%, the Nasdaq +399, +1.54%, and the small-cap Russell 2000 +70 points, a gaudy +2.56%.
Time will tell how this all transpires, and last we heard there are some real disagreements regarding uranium enrichment, the Strait of Hormuz, etc. that may well be sticking points somewhere within the 30 days. But this war, which dates back to late February, would be happily ended by both the U.S. and Iran at this stage.
NVIDIA Reports Another Record Revenue Quarter
The world’s largest company by market cap ($5.38 Trillion and counting), NVIDIANVDA once again outperformed its lofty expectations for Q1 after today’s close. Earnings of $1.87 per share surpassed estimates by a solid dime, and up +140% year over year from $0.81 in the year-ago quarter. Revenues surged to a new record: $81.6 billion in the first three months of the year, +85% from Q1 last year.
The AI infrastructure business, one might say, was booming last quarter. Data Center grew by +92% year over year to $75.2 billion, with Compute revenue +77% to $60.4 billion, +18% quarter over quarter. Data Center Networking rose +199% from a year ago to $14.8 billion, +35% quarter over quarter. The company also announced an $80 billion share repurchase program, and upped their dividend a penny to $0.25 per share.
CEO Jensen Huang called this “the largest infrastructure expansion in human history,” and by dollar amount he’s probably right. Next-quarter revenues are expected to jump to $91.0 billion (the Zacks consensus had been for $84.1 billion), and this doesn’t include whatever data center compute revenues they may obtain from China in the quarter. To quote Mel Brooks, “It’s good to be da king!”
Other Earnings Reports After the Close: URBN, ELF, INTU
Urban Outfitters URBN reported a solid Q1 this afternoon, with earnings of $1.30 per share nicely above the $1.12 projected, and swinging to growth year over year. Revenues of $1.48 billion up +11.4% from the prior year quarter. Free People grew +9.8%, Urban Outfitters flagship brand was +9.3%, and Anthropologie gained +1.9%. Shares are not up on this news, however, as the specter of tariffs remain.
e.l.f. BeautyELF posted an impressive fiscal Q4 after today’s close, beating on earnings by 3 cents to $0.32 per share on $449.3 million, up +35% from the prior-year quarter. The rhode acquisition assisted the company’s revenue gains, and the company came out ahead on its yearly numbers. It also expects improved growth in the new fiscal year.
IntuitINTU also performed better than expected in its fiscal Q3 after the close, with earnings of $12.80 up +10% year over year and ahead of the $12.48 per share in the Zacks consensus. Revenues also grew +10% from the prior year quarter to $8.6 billion, ahead of the $8.52 billion projected. Consumer revenues grew +8%, including +7% for Turbo Tax and +15% for Credit Karma.
We cover more than 1,000 of the most widely followed stocks in our Equity Research Reports. Each report features independent research from our analysts and provides in-depth analysis on a company, its fundamentals and its growth prospects. Quickly access reports for New Upgrades and New Downgrades.
You can also find a report on the ticker of your choice, or access all of the stock reports covered by Zacks analysts.
Brigit subscription growth, Acima digital partnerships, and steadier Rent-A-Center execution support diversified earnings and cash generation through 2026 for shareholders.
Strength in the Connected Devices and Software & Services units and accretive acquisitions bode well for Axon. Strategic partnerships also hold promise.
West Pharmaceutical Services (WST)Upgraded: 05/19/26
High-value mix, GLP-one momentum, and global quality upgrades support growth, while capital returns and capacity execution improve durability over time.
Columbia Sportswear gains momentum with its ACCELERATE strategy, strong brand innovation, cost-efficiency programs and solid financial health, positioning it for sustained growth ahead.
Urban Outfitters is poised for growth on the back of its decent Retail segment, merchandising improvements and store-rationalization efforts. Its FP Movement initiative also bodes well.
AI infrastructure spending shifts toward Applied Materials’ core markets, while services, new products and partner programs support durable value capture growth.
Lower yield outlook, softer close-in demand, execution gaps, fuel volatility, heavy capex and high leverage reduce near-term visibility for shareholders.
Main Street’s expansion strategies will likely raise operating expenses in the near term, which is expected to hamper the bottom line. Regulatory constraints pose another headwind.
Regulatory outcomes, customer concentration and project execution, and large financing needs could materially limit returns if growth or recovery lags.
American Eagle Outfitters (AEO)Downgraded: 05/16/26
American Eagle has been struggling with headwinds related to the consumer and macroeconomic operating landscape. In addition, stiff competition in the industry remains a concern.
Large operating losses and higher investment spending, complex deals, roadmap deadlines, and acquisition execution can keep volatility elevated near-term valuation.
General Mills faces weak demand, margin pressure, inventory disruptions and elevated promotions, weighing on performance and limiting near-term recovery visibility.
American Eagle is well placed on cost-reduction efforts and brand progress. In the second half, the company expects to cycle tariffs and advertising investments.
Innovative Medicine unit is showing a growth trend, driven by existing products like Darzalex, Tremfya and Erleada and continued uptake of new launches, including Spravato, Carvykti and Tecvayli.
Advertising scale, broader entertainment formats, and technology-led product upgrades support revenue growth while disciplined margins and buybacks add cash durability.
Kroger drives growth with digital expansion, private label success, fresh offerings and strategic partnerships, while investments in AI and value creation fuel long-term scalability.
Align Technology’s robust product line, balanced growth across all channels and consistent focus on international markets to drive growth bolster our confidence in the stock.
View the Zacks #1 Rank List
