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Agree Realty is a high-quality net lease REIT with strong exposure to investment-grade, necessity-based retail tenants and a robust development platform. ADC delivered 7.9% YoY AFFO per share growth in Q1 2026, with a 104% rent recapture rate and active capital recycling supporting bottom-line expansion. I maintain a "buy" rating on ADC, citing its 4.3% yield, conservative 3.2x net debt/EBITDA, and well-covered 70% payout ratio.
Inflation relentlessly erodes purchasing power, making dividend growth essential for income investors to maintain real income. A barbell strategy—combining moderate-yielding dividend growth stocks/ETFs and 6.5%+ yielding investment grade preferreds—offers both growth and current income. AI-driven capex by large-cap S&P 500 firms is powering economic growth and masking weakness among lower-income consumers.
REITs (XLRE) may face another sector-wide pullback due to rising bond yields and inflation driven by Middle East conflict. CareTrust REIT and Agree Realty stand out for quality, growth, and strong balance sheets, but current valuations demand patience. CareTrust REIT stands out for its strong acquisition-driven growth, investment-grade upgrade, and robust balance sheet but is currently expensive at 19.63x earnings.
ADC Therapeutics shares slumped nearly 53% in premarket trading on Thursday after a late-stage study testing its blood cancer drug showed more deaths among treated patients, despite meeting its main goal of improving progression-free survival.
Thirty-three US REITs utilized their at-the-market (ATM) offering programs during the recent quarter, raising $4.15 billion in aggregate proceeds. Healthcare REIT Welltower Inc. raised the most capital during the first quarter, selling nearly 7.7 million shares of common stock through its ATM program for $1.56 billion in gross proceeds. In the aggregate, healthcare REITs raised $2.67 billion through their ATM programs during the first quarter, the most of any property sector. The data center REIT sector was next with $875.0 million.
MRK's investigational TROP2-directed ADC, sac-TMT, achieves key survival goals in a phase III endometrial cancer study.
Whitehawk Therapeutics pivots to focus on three next-generation antibody-drug conjugates [ADCs] after selling FYARRO and rebranding from Aadi Bioscience. I downgrade WHWK from 'Strong Buy' to 'Hold' due to the early-stage pipeline, competitive landscape, and unproven efficacy/safety of modified ADCs. Key catalysts include phase 1 data readouts for HWK-007 and HWK-016 in 1H 2027 and an IND filing for HWK-206 in mid-2026.
ADC Therapeutics SA remains a Strong Buy, driven by pivotal ZYNLONTA combination trials targeting 2nd-line r/r DLBCL. Topline data from the phase 3 LOTIS-5 trial (ZYNLONTA + rituximab) is expected in Q2 2026, representing a major inflection point. ZYNLONTA + glofitamab in phase 1b LOTIS-7 achieved an 89.8% ORR and 77.6% CR rate, with further data expected by the end of 2026.