For Immediate Release

Chicago, IL – October 23, 2026 – Zacks Equity Research shares Dollar General Corp. (DG Quick QuoteDG - Free Report) as the Bull of the Day and Las Vegas Sands Corp. (LVS Quick QuoteLVS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Chevron Corp. (CVX Quick QuoteCVX - Free Report) , Diamondback Energy, Inc. (FANG Quick QuoteFANG - Free Report) and APA Corp. (APA Quick QuoteAPA - Free Report) .

Here is a synopsis of all five stocks.

Bull of the Day:

Dollar General Corp., a Zacks Rank #1 (Strong Buy), has spent the past few years quietly rebuilding a business the market had largely written off. The discount retailer stumbled badly through 2023 and 2024 on inventory problems, shrink and a stretched core customer. That turnaround is now showing up in the only place that ultimately matters — the numbers.

Shares have advanced roughly 35% over the past year while the broader retail tape has been anything but hospitable. Relative strength of that kind, paired with four consecutive quarters of meaningful earnings beats, is precisely the combination we look for.

Dollar General is part of the Zacks Retail – Discount Stores industry group, which currently ranks in the top 7% out of more than 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months, just as it has over the past month.

Stocks in this industry are projected to experience above-average earnings growth while trading at reasonable valuations, a powerful combination that should lead to higher prices over time.

Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.

It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our odds of success.

Company Description

Dollar General operates more than 20,000 small-format discount stores across the United States, concentrated in rural and small-town markets that larger competitors have historically underserved. The merchandise mix skews heavily toward consumables — food, cleaning supplies, health and beauty items — with seasonal goods, home products and apparel rounding out the assortment. The company was founded in 1939 and is headquartered in Goodlettsville, Tennessee.

The structural argument here is about location rather than price. Roughly 80% of Dollar General's stores sit in towns of 20,000 people or fewer, where the nearest alternative is often a meaningful drive away. That footprint is extremely difficult to replicate and it makes the chain a convenience business as much as a value business — a distinction that matters when fuel prices climb and household budgets tighten.

It is also worth naming what went wrong, because the recovery only makes sense against it. Dollar General overextended on new store openings, let inventory and shrink get away from it, and watched its core low-income customer absorb two years of cumulative price inflation. Management then slowed unit growth, invested in store labor, and leaned on markdowns and private label. The result has been a steady rebuild, and the fundamentals support that view.

Earnings Momentum and Rising Estimates

Dollar General () reported fiscal second-quarter results in late August that beat on every line. Adjusted earnings of $2.23 per share rose 19.9% from the year-ago $1.86, and net sales grew 5.2% to $11.29 billion. The company has now delivered a trailing four-quarter average earnings surprise of 19.1%.

The composition of the comp is what I find most encouraging. Same-store sales grew 3.5% on a 2.0% increase in customer traffic and a 1.5% increase in average ticket. Traffic has been the scarce commodity across retail this year — a number of large chains have posted positive comps built entirely on price. Dollar General is bringing more people through the door, and it is doing so while gross margin expands, which argues the gains are not being bought with promotions.

Management responded by raising full-year fiscal 2026 guidance across the board: net sales growth to approximately 4.0–4.3% from 3.7–4.2%, same-store sales to 2.5–2.9% from 2.2–2.7%, and earnings per share to $7.80–$8.00 from $7.20–$7.45.

Analysts have followed. The Zacks Consensus Estimate for the current fiscal year implies sales growth of 4.3% and earnings growth of 15.9% to $7.94 per share. Rising estimates of this kind are the engine behind the Zacks Rank #1.

Let's Get Technical

DG shares remain above an upward-sloping 50-day (blue line) moving average, and the stock has built a series of higher highs and higher lows over the past 6 months. Volume has expanded on the advances and contracted on the pullbacks, which is the accumulation signature we want to see.

This is the kind of stock we want to include in the portfolio — one that is trending well and receiving positive earnings estimate revisions at the same time. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As long as that trend remains intact and Dollar General continues to deliver earnings beats, the stock should extend its advance.

Bottom Line

There is a macro argument layered on top of the company-specific one. With core inflation reaccelerating and the consumer increasingly selective, trade-down behavior works in Dollar General's favor. The chain gains share precisely when households tighten up, and we are in one of those stretches.

Backed by a leading industry group, four consecutive earnings beats averaging better than 19%, and a guidance raise that extends well beyond a one-time tariff benefit, it isn't difficult to see why this company is a compelling investment. Dollar General carries a Zacks Rank #1 (Strong Buy) driven by favorable estimate momentum.

Robust fundamentals combined with a strong technical trend certainly justify adding shares to the mix. If you haven't already done so, be sure to put DG on your watchlist.   

Bear of the Day:

Las Vegas Sands Corp. develops and operates integrated resorts that combine casinos, hotels, convention space, retail and entertainment.

Its properties are concentrated in two markets: Macao, where it operates The Venetian, The Londoner, The Parisian and Sands Macao, and Singapore, home to Marina Bay Sands. The company sold its Las Vegas assets in 2022 and is now a pure-play Asian gaming operator despite the name.

That concentration was an enormous advantage when both markets were compounding. It is a liability now. Las Vegas Sands has no domestic business to offset weakness abroad, no diversification across regulatory regimes, and a cost structure built for volumes that are no longer showing up at the high end.

The Zacks Rundown

Las Vegas Sands has been badly underperforming the market. A Zacks Rank #5 (Strong Sell), the stock has fallen roughly 43% year to date against a 12% gain for the S&P 500. Shares have been in a well-defined downtrend since the spring and have shown no meaningful ability to hold a rally.

The stock is part of the Zacks Gaming industry group, which currently ranks in the bottom 15% out of more than 250 Zacks Ranked Industries. Because this industry is ranked in the bottom half of all Zacks Ranked Industries, we expect it to underperform the market over the next 3 to 6 months, just as it has over the past year.

While individual stocks have the ability to outperform even when included in weak industries, their industry association serves as a headwind for any potential rallies. Stocks in this group are also expected to post below-average earnings growth. With much better alternatives in the current market environment, this stock should be avoided.

Two Straight Misses, Both by the Same Margin

Las Vegas Sands () reported third-quarter results earlier this week that missed on both lines and by a wide margin. Adjusted earnings of $0.54 per share came in 23.94% below the $0.71 Zacks Consensus Estimate and fell from $0.78 a year earlier. Revenue of $3.22 billion missed by 3.23% and declined from $3.33 billion.

What makes that print more troubling than a single bad quarter is the one before it. In the prior period, the company earned $0.59 against a $0.77 consensus — a miss of 23.38%. Two consecutive quarters missing by essentially the identical margin is not noise. It suggests the Street's model of this business is structurally wrong, and that analysts have not yet marked down far enough.

The margin story underneath is where the damage lives. Consolidated adjusted property EBITDA fell to $1.119 billion from $1.344 billion, with margin compressing to 34.8% from 40.3% — more than 500 basis points in a single year. Resort operating expenses rose to $2.103 billion from $1.998 billion while revenue declined, which is straightforward operating deleverage.

Singapore is the epicenter. Marina Bay Sands saw revenue fall to $1.294 billion from $1.436 billion. Macao is the subtler problem. Revenue actually rose, to $1.940 billion from $1.906 billion, and management highlighted market share reaching a multi-year high. Yet segment EBITDA fell to $529 million from $601 million and margin compressed to 27.3% from 31.5%. The company is buying share with promotional spending, which is the least durable kind of growth there is.

Deteriorating Forecasts

Analysts have been cutting their numbers, and the estimate trend is firmly negative. The current fiscal year Zacks Consensus Estimate now stands at $3.00 per share on $13.66 billion in revenue. Consistently missing expectations by a wide margin while forward estimates fall is a recipe for stock price underperformance.

Pay particular attention to the bar set for the coming quarter. The consensus calls for $0.80 per share on $3.57 billion — a dramatic sequential recovery from the $0.54 just reported. Given that this company has now missed by roughly 24% twice running, that estimate looks optimistic, and a third disappointment against a visibly high bar would do real damage. These are the types of negative trends that the bears like to see.

Technical Outlook

LVS stock has been in a persistent downtrend for most of 2026. Both the 50-day (blue line) and 200-day (red line) moving averages are sloping downward, and shares have spent the bulk of the year trading beneath them. Every rally attempt has been capped at a progressively lower level, which is the signature of distribution rather than accumulation.

Shares would need to reclaim both moving averages and show a genuine inflection in earnings estimate revisions to warrant taking any long positions in the stock.

Final Thoughts

A deteriorating fundamental and technical backdrop shows that this stock doesn't deserve a spot in most portfolios. The fact that LVS is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.

Falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend. Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy.  

Additional content:

Oil Prices Climb: 3 Energy Stocks Poised to Benefit from the Rally

Crude oil prices have climbed amid geopolitical tensions in the Middle East and concerns about global supply disruptions. Higher oil prices can support revenues, earnings and cash flow for exploration and production companies. However, the benefits depend on production volumes, operating costs, hedging strategies and capital spending.

The U.S. Energy Information Administration, in its October 2026 Short-Term Energy Outlook, projected that Brent crude oil prices would average $105 per barrel in the fourth quarter of 2026. The forecast reflects ongoing supply concerns and uncertainty about how quickly disrupted oil supplies could recover. However, a slowdown in global demand or an improvement in supply conditions could put pressure on crude prices.

Against this backdrop, investors may want to monitor Chevron Corp., Diamondback Energy, Inc. and APA Corp. Their production profiles, operating strategies and financial performance offer different ways to evaluate the potential benefits of higher oil prices.

Higher Oil Prices Could Support Energy Earnings

Oil producers generally benefit when crude prices rise, provided production volumes remain stable and costs do not rise at the same pace. Stronger realized prices can improve operating cash flow and free cash flow, allowing companies to reduce debt, fund capital expenditures and return more cash to shareholders.

However, higher oil prices do not guarantee stronger earnings for every energy company. Hedging contracts may limit the immediate benefit, while rising drilling expenses, service costs and production taxes can reduce margins. Investors should therefore consider each company's operational performance and financial discipline alongside the direction of crude prices.

Chevron: Integrated Operations Offer Diversified Oil Exposure

Chevron is an integrated energy company with operations spanning oil and natural gas production, refining, chemicals and marketing. The company’s upstream business provides direct exposure to crude oil prices, while its downstream operations offer additional earnings sources but may face pressure from higher crude input costs.

Chevron reported second-quarter 2026 adjusted earnings of $12 billion, or $6.06 per share. Worldwide production increased 20% year over year, supported largely by contributions from legacy Hess assets and growth in the Permian Basin and Gulf of America. The company also achieved record U.S. refinery crude throughput of 1.07 million barrels per day.

Higher oil prices could support Chevron's upstream earnings and cash flow, particularly if production growth continues. Its integrated business model also provides diversification across the energy value chain. Nevertheless, changes in refining margins, operating costs and commodity prices across its businesses could influence overall profitability.

Investors should monitor production growth, capital expenditures, debt reduction and shareholder returns to determine whether favorable oil prices translate into sustainable financial gains. The Zacks Consensus Estimate projects Chevron's earnings to grow 142.94% year over year in 2026. CVX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Diamondback: Permian Production Could Boost Cash Flow

Diamondback is an independent oil and natural gas producer focused primarily on the Permian Basin. Its concentrated exposure to this major U.S. oil-producing region makes crude oil prices an important driver of revenues and cash flow.

In the second quarter of 2026, Diamondback reported average oil production of 525,000 barrels per day. It also registered total production of more than 1 million barrels of oil equivalent per day. The company generated $3.6 billion in operating cash flow and $2.3 billion in free cash flow. FANG also raised the full-year 2026 oil production guidance to at least 522,000 barrels per day while maintaining its cash capital expenditure outlook at approximately $3.9 billion.

Higher oil prices could strengthen Diamondback's realized pricing and cash generation if production levels and operating costs remain favorable. Its substantial Permian production base provides meaningful exposure to changes in crude prices. However, investors should also consider drilling costs, production taxes, capital requirements and hedging arrangements when assessing the potential earnings impact. The Zacks Consensus Estimate projects Diamondback's earnings to grow 57.37% year over year in 2026. FANG carries a Zacks Rank #2 (Buy) at present.

APA: Higher Oil Prices Could Support Earnings Growth

APA Corporation is an independent exploration and production company with operations in the United States and internationally. Its oil production exposure makes realized crude prices an important factor influencing revenues, operating cash flow and free cash flow.

APA reported second-quarter 2026 net income of $747 million, or $2.11 per diluted share. Adjusted earnings were $669 million, or $1.89 per diluted share. U.S. oil production averaged 123,500 barrels per day, exceeding the company's guidance. APA Corporation also generated $1.7 billion in operating cash flow and $738 million in free cash flow during the quarter.

Higher crude oil prices could support APA's realized prices and cash flow, assuming production and cost trends remain favorable. The company also raised its full-year U.S. oil production guidance to 123,000 barrels per day while maintaining its U.S. capital spending outlook at $1.3 billion.

Investors should monitor production trends, international operating conditions, capital requirements and debt reduction. These factors will help determine whether higher oil prices translate into stronger financial flexibility and sustainable shareholder returns. The Zacks Consensus Estimate projects APA Corporation's earnings to grow 61.80% year over year in 2026. APA currently holds a Zacks Rank #2.

Conclusion

Higher crude oil prices could create opportunities for energy investors, with Chevron, Diamondback and APA Corporation offering distinct investment characteristics. Chevron's integrated operations provide diversified exposure to the energy value chain, while Diamondback and APA Corporation offer more direct exposure to oil production.

Investors can monitor earnings prospects, cash flow generation, operational execution and capital allocation to assess each company's potential for sustained financial performance. These factors, together with company valuations and developments in the crude oil market, can help investors evaluate the opportunities offered by these three energy stocks.

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

800-767-3771 ext. 9339

https://www.zacks.com

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.