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Constellium highlighted as Zacks Bull and AGCO Bear of the Day
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For Immediate Release
Chicago, IL – September 17, 2026 – Zacks Equity Research shares Constellium (CSTM - Free Report) as the Bull of the Day and AGCO (AGCO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Kinder Morgan, Inc. (KMI - Free Report) , MPLX LP (MPLX - Free Report) and The Williams Companies, Inc. (WMB - Free Report) .
Constellium has emerged as an intriguing way to gain exposure to stronger aluminum markets, improving aerospace demand, and favorable pricing trends.
The aluminum products manufacturer is coming off record profitability, while its earnings outlook has strengthened enough to earn CSTM a Zacks Rank #1 (Strong Buy), suggesting more upside after a nearly 40% year-to-date rally.
Record EBITDA Highlights Improving Fundamentals
Constellium most recently delivered an exceptional second quarter, with Q2 revenue rising 31% year over year to $2.75 billion and adjusted EBITDA reaching $439 million, up from $146 million a year ago.
Higher aluminum prices provided a meaningful boost, including a $129 million positive non-cash metal-price-lag benefit. Importantly, however, the underlying business was strong as well.
Excluding metal-price lag—the timing difference between when metal prices are reflected in revenue and cost of sales—Constellium’s consolidated segment adjusted EBITDA still reached a company-record $310 million, up from $165 million in the prior-year quarter.
Aerospace and Transportation EBITDA jumped 61%, while Packaging and Automotive Rolled Products EBITDA more than doubled.
Constellium has benefited from improving aerospace demand, favorable pricing and product mix, North American automotive-sheet supply shortages, and advantageous scrap and recycling economics.
Higher Aluminum Prices Provide Another Tailwind
Constellium's Q2 revenue growth was partly driven by higher metal prices, while rising primary aluminum prices created the favorable metal-price-lag impact.
Still, investors shouldn't view CSTM simply as a bet on rising aluminum prices. Metal-price lag is non-cash and can reverse as commodity prices fluctuate. More durable drivers include aerospace growth, improved operating performance, and recycling economics.
That said, Constellium has received a further boost as aluminum prices have remained historically elevated, trading well over $3,000 per metric ton. This comes amid tight supply conditions, with the ongoing US-Iran conflict disrupting aluminum supply in the Middle East.
Constellium is Positioned to Weather Higher Rates
Persistent inflation could keep metal prices elevated and potentially force the Federal Reserve toward tighter monetary policy.
Constellium appears reasonably positioned for such an environment. The company ended Q2 with leverage of just 1.8X and generated $90 million of free cash flow during the quarter. It also redeemed $100 million of its 5.625% senior notes in July, further reducing debt obligations.
Higher interest rates could eventually weigh on cyclical automotive and industrial demand, so rate hikes themselves aren't necessarily bullish for CSTM. Still, its improving profitability, cash generation, and manageable leverage give the company greater flexibility if borrowing costs remain elevated.
Stronger Outlook & Cheap Valuation Supports the Bull Case
Following its strong Q2 results, Constellium raised its 2026 guidance and now expects adjusted EBITDA of $980 million to $1.02 billion, excluding metal-price lag, along with free cash flow above $300 million.
That outlook suggests the earnings improvement extends well beyond the temporary benefit from rising aluminum prices. Based on Zacks estimates, Constellium’s annual sales are now expected to spike 25% this year to $10.6 billion, with adjusted earnings expected to soar over 92% to $3.70 per share versus EPS of $1.92 in FY25.
While FY27 EPS is projected to normalize and contract to $2.89, estimates have now risen nearly 5% in the last 60 days, with it noteworthy that FY26 EPS estimates are up over 8% in the last two months.
More intriguingly, despite its sharp YTD rally, CSTM still trades at under 7X forward earnings at roughly $26 a share.
This sits slightly below its Zacks Metal Products-Distribution Industry average and represents a compelling discount to the broader Zacks Industrial Products sector and S&P 500, which both trade at forward P/E multiples above 20X.
Bottom Line
Constellium is benefiting from a favorable combination of stronger aerospace demand, improved pricing and product mix, advantageous recycling economics, and elevated aluminum prices.
With record underlying EBITDA, improving free cash flow, declining leverage, and a strengthening earnings outlook, CSTM's fundamentals appear to be moving in the right direction.
In addition to its strong buy rating suggesting more upside based on the trend of rising EPS revisions, CSTM has an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
Agricultural equipment makerAGCO is facing a deteriorating earnings outlook as weaker farm-equipment demand, softer pricing assumptions, and management’s own guidance cuts weigh on estimates.
That combination has driven a notable decline in consensus EPS estimates and pushed AGCO to a Zacks Rank #5 (Strong Sell).
Declining EPS estimates are also taking some shine off AGCO’s modest valuation of roughly 22X forward earnings, and with shares trading above $100, investors may want to remain cautious for now.
Why Farm Equipment Demand Has Weakened
Farm equipment demand has softened as lower crop prices and elevated input costs pressure farmer income and make producers more cautious about large capital purchases.
Higher borrowing costs have also made financing tractors, combines, and other equipment more expensive, while many farmers are extending replacement cycles after several years of strong equipment spending.
These pressures have been especially noticeable in North America, Brazil, and parts of Europe, contributing to lower industry volumes and a more challenging pricing environment for AGCO.
Notably, AGCO’s Zacks Manufacturing-Farm Equipment Industry is currently in the bottom 27% of more than 240 Zacks industries, with the space including other noteworthy companies such as CNH Industrial and Deere & Company.
EPS Estimates Keep Falling
The trend in earnings estimates has been decidedly negative. Over the last 60 days, AGCO’s full-year fiscal 2026 EPS consensus has fallen from $6.15 to $5.58, a decline of roughly 9%, while FY27 EPS estimates have dropped from $8.01 to $7.47, or nearly 7%.
Near-term revisions have been even more pronounced, with the current-quarter EPS estimate falling about 40% over the same period from $1.46 to $0.88.
The pressure follows weaker-than-expected industry conditions across several important markets, resulting in AGCO most recently missing its Q2 top-and bottom-line expectations.
Management has cited cautious equipment spending, elevated input costs, tighter credit conditions, and softer demand in areas including Brazil, Western Europe, and North American small agriculture.
Guidance Cuts Reinforce the Downtrend
Aforementioned, AGCO lowered its own 2026 outlook following its latest results. Full-year sales guidance was reduced to $10.1-$10.2 billion from $10.5-$10.7 billion, while adjusted EPS guidance moved down to $5.50-$5.75 from roughly $6.00 previously.
Management also trimmed its pricing assumption to 2%-2.5% from 2%-3% and lowered its expected currency benefit to 2% from 3%, further pressuring the earnings outlook.
Bottom Line
AGCO continues to face a difficult agricultural-equipment backdrop, and the falling EPS estimates suggest analysts are becoming increasingly cautious about the pace of recovery.
With weaker demand, reduced pricing expectations, and lower management guidance driving estimate cuts, AGCO is a stock investors may want to approach cautiously until the earnings revision trend improves.
Additional content:
Iran War Uncertainty Puts These 3 Midstream Stocks in Focus
The overall stock market is now experiencing uncertainty stemming from the Iran war, which pushed oil prices above the $100 per barrel mark again and created lasting inflationary pressure. It is now likely that investors, most of whom are risk-averse, are looking for stocks that can sail through the uncertainty.
The uncertainty and volatility have been reflected in oil-price movements as conflicts in the Middle East continue to affect energy markets. However, not all stocks are affected by the war-induced challenges. Three midstream players, Kinder Morgan, Inc., MPLX LP and The Williams Companies, Inc., are well-poised to gain. Let's delve deeper.
Resilient Midstream Business
Stocks in the midstream space have lower exposure to volatility in commodity prices than oil and gas producers. This is because midstream players generate stable fee-based revenues since the transportation and storage assets are being booked by shippers for the long term. Hence, their business model is relatively low-risk, which indicates considerably less exposure to oil and gas prices and volume risks.
3 Pipeline Stocks to Gain: KMI, MPLX & WMB
Kinder Morgan: With its operating interests in oil and gas pipeline networks spread across 78,000 miles, KMI is a leading energy infrastructure company in North America. It derives most of its earnings from take-or-pay contracts, generating stable fee-based revenues.
MPLX: MPLX’s midstream business comprises transporting crude oil and refined products. The partnership generates stable cash flows from its long-term contracts with the shippers. Its crude oil and natural gas gathering systems also generate stable fee-based revenues. Currently, the firm carries a Zacks Rank of 3.
The Williams Companies: The company is well-poised to capitalize on the mounting demand for clean energy since it is engaged in transporting, storing, gathering and processing natural gas and natural gas liquids.
With its pipeline networks spread across more than 30,000 miles, The Williams Companies, with a Zacks Rank of 3, connects premium basins in the United States to key markets. WMB’s assets can meet a considerable proportion of the nation’s natural gas consumption, which is utilized for heating purposes and clean-energy generation.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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Constellium highlighted as Zacks Bull and AGCO Bear of the Day
For Immediate Release
Chicago, IL – September 17, 2026 – Zacks Equity Research shares Constellium (CSTM - Free Report) as the Bull of the Day and AGCO (AGCO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Kinder Morgan, Inc. (KMI - Free Report) , MPLX LP (MPLX - Free Report) and The Williams Companies, Inc. (WMB - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Constellium has emerged as an intriguing way to gain exposure to stronger aluminum markets, improving aerospace demand, and favorable pricing trends.
The aluminum products manufacturer is coming off record profitability, while its earnings outlook has strengthened enough to earn CSTM a Zacks Rank #1 (Strong Buy), suggesting more upside after a nearly 40% year-to-date rally.
Record EBITDA Highlights Improving Fundamentals
Constellium most recently delivered an exceptional second quarter, with Q2 revenue rising 31% year over year to $2.75 billion and adjusted EBITDA reaching $439 million, up from $146 million a year ago.
Higher aluminum prices provided a meaningful boost, including a $129 million positive non-cash metal-price-lag benefit. Importantly, however, the underlying business was strong as well.
Excluding metal-price lag—the timing difference between when metal prices are reflected in revenue and cost of sales—Constellium’s consolidated segment adjusted EBITDA still reached a company-record $310 million, up from $165 million in the prior-year quarter.
Aerospace and Transportation EBITDA jumped 61%, while Packaging and Automotive Rolled Products EBITDA more than doubled.
Constellium has benefited from improving aerospace demand, favorable pricing and product mix, North American automotive-sheet supply shortages, and advantageous scrap and recycling economics.
Higher Aluminum Prices Provide Another Tailwind
Constellium's Q2 revenue growth was partly driven by higher metal prices, while rising primary aluminum prices created the favorable metal-price-lag impact.
Still, investors shouldn't view CSTM simply as a bet on rising aluminum prices. Metal-price lag is non-cash and can reverse as commodity prices fluctuate. More durable drivers include aerospace growth, improved operating performance, and recycling economics.
That said, Constellium has received a further boost as aluminum prices have remained historically elevated, trading well over $3,000 per metric ton. This comes amid tight supply conditions, with the ongoing US-Iran conflict disrupting aluminum supply in the Middle East.
Constellium is Positioned to Weather Higher Rates
Persistent inflation could keep metal prices elevated and potentially force the Federal Reserve toward tighter monetary policy.
Constellium appears reasonably positioned for such an environment. The company ended Q2 with leverage of just 1.8X and generated $90 million of free cash flow during the quarter. It also redeemed $100 million of its 5.625% senior notes in July, further reducing debt obligations.
Higher interest rates could eventually weigh on cyclical automotive and industrial demand, so rate hikes themselves aren't necessarily bullish for CSTM. Still, its improving profitability, cash generation, and manageable leverage give the company greater flexibility if borrowing costs remain elevated.
Stronger Outlook & Cheap Valuation Supports the Bull Case
Following its strong Q2 results, Constellium raised its 2026 guidance and now expects adjusted EBITDA of $980 million to $1.02 billion, excluding metal-price lag, along with free cash flow above $300 million.
That outlook suggests the earnings improvement extends well beyond the temporary benefit from rising aluminum prices. Based on Zacks estimates, Constellium’s annual sales are now expected to spike 25% this year to $10.6 billion, with adjusted earnings expected to soar over 92% to $3.70 per share versus EPS of $1.92 in FY25.
While FY27 EPS is projected to normalize and contract to $2.89, estimates have now risen nearly 5% in the last 60 days, with it noteworthy that FY26 EPS estimates are up over 8% in the last two months.
More intriguingly, despite its sharp YTD rally, CSTM still trades at under 7X forward earnings at roughly $26 a share.
This sits slightly below its Zacks Metal Products-Distribution Industry average and represents a compelling discount to the broader Zacks Industrial Products sector and S&P 500, which both trade at forward P/E multiples above 20X.
Bottom Line
Constellium is benefiting from a favorable combination of stronger aerospace demand, improved pricing and product mix, advantageous recycling economics, and elevated aluminum prices.
With record underlying EBITDA, improving free cash flow, declining leverage, and a strengthening earnings outlook, CSTM's fundamentals appear to be moving in the right direction.
In addition to its strong buy rating suggesting more upside based on the trend of rising EPS revisions, CSTM has an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
Bear of the Day:
Agricultural equipment makerAGCO is facing a deteriorating earnings outlook as weaker farm-equipment demand, softer pricing assumptions, and management’s own guidance cuts weigh on estimates.
That combination has driven a notable decline in consensus EPS estimates and pushed AGCO to a Zacks Rank #5 (Strong Sell).
Declining EPS estimates are also taking some shine off AGCO’s modest valuation of roughly 22X forward earnings, and with shares trading above $100, investors may want to remain cautious for now.
Why Farm Equipment Demand Has Weakened
Farm equipment demand has softened as lower crop prices and elevated input costs pressure farmer income and make producers more cautious about large capital purchases.
Higher borrowing costs have also made financing tractors, combines, and other equipment more expensive, while many farmers are extending replacement cycles after several years of strong equipment spending.
These pressures have been especially noticeable in North America, Brazil, and parts of Europe, contributing to lower industry volumes and a more challenging pricing environment for AGCO.
Notably, AGCO’s Zacks Manufacturing-Farm Equipment Industry is currently in the bottom 27% of more than 240 Zacks industries, with the space including other noteworthy companies such as CNH Industrial and Deere & Company.
EPS Estimates Keep Falling
The trend in earnings estimates has been decidedly negative. Over the last 60 days, AGCO’s full-year fiscal 2026 EPS consensus has fallen from $6.15 to $5.58, a decline of roughly 9%, while FY27 EPS estimates have dropped from $8.01 to $7.47, or nearly 7%.
Near-term revisions have been even more pronounced, with the current-quarter EPS estimate falling about 40% over the same period from $1.46 to $0.88.
The pressure follows weaker-than-expected industry conditions across several important markets, resulting in AGCO most recently missing its Q2 top-and bottom-line expectations.
Management has cited cautious equipment spending, elevated input costs, tighter credit conditions, and softer demand in areas including Brazil, Western Europe, and North American small agriculture.
Guidance Cuts Reinforce the Downtrend
Aforementioned, AGCO lowered its own 2026 outlook following its latest results. Full-year sales guidance was reduced to $10.1-$10.2 billion from $10.5-$10.7 billion, while adjusted EPS guidance moved down to $5.50-$5.75 from roughly $6.00 previously.
Management also trimmed its pricing assumption to 2%-2.5% from 2%-3% and lowered its expected currency benefit to 2% from 3%, further pressuring the earnings outlook.
Bottom Line
AGCO continues to face a difficult agricultural-equipment backdrop, and the falling EPS estimates suggest analysts are becoming increasingly cautious about the pace of recovery.
With weaker demand, reduced pricing expectations, and lower management guidance driving estimate cuts, AGCO is a stock investors may want to approach cautiously until the earnings revision trend improves.
Additional content:
Iran War Uncertainty Puts These 3 Midstream Stocks in Focus
The overall stock market is now experiencing uncertainty stemming from the Iran war, which pushed oil prices above the $100 per barrel mark again and created lasting inflationary pressure. It is now likely that investors, most of whom are risk-averse, are looking for stocks that can sail through the uncertainty.
The uncertainty and volatility have been reflected in oil-price movements as conflicts in the Middle East continue to affect energy markets. However, not all stocks are affected by the war-induced challenges. Three midstream players, Kinder Morgan, Inc., MPLX LP and The Williams Companies, Inc., are well-poised to gain. Let's delve deeper.
Resilient Midstream Business
Stocks in the midstream space have lower exposure to volatility in commodity prices than oil and gas producers. This is because midstream players generate stable fee-based revenues since the transportation and storage assets are being booked by shippers for the long term. Hence, their business model is relatively low-risk, which indicates considerably less exposure to oil and gas prices and volume risks.
3 Pipeline Stocks to Gain: KMI, MPLX & WMB
Kinder Morgan: With its operating interests in oil and gas pipeline networks spread across 78,000 miles, KMI is a leading energy infrastructure company in North America. It derives most of its earnings from take-or-pay contracts, generating stable fee-based revenues.
The midstream energy major, carrying a Zacks Rank #3 (Hold), is likely to grow on the back of its business model, which is relatively resilient to volume and commodity price risks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MPLX: MPLX’s midstream business comprises transporting crude oil and refined products. The partnership generates stable cash flows from its long-term contracts with the shippers. Its crude oil and natural gas gathering systems also generate stable fee-based revenues. Currently, the firm carries a Zacks Rank of 3.
The Williams Companies: The company is well-poised to capitalize on the mounting demand for clean energy since it is engaged in transporting, storing, gathering and processing natural gas and natural gas liquids.
With its pipeline networks spread across more than 30,000 miles, The Williams Companies, with a Zacks Rank of 3, connects premium basins in the United States to key markets. WMB’s assets can meet a considerable proportion of the nation’s natural gas consumption, which is utilized for heating purposes and clean-energy generation.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Media Contact
Zacks Investment Research
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.