The Street

Home Depot entered its latest earnings report with the housing market still under pressure, but Bank of America sees enough strength inside the business to stay bullish on the stock.

Bank of America analyst Christopher Nardone reiterated a Buy rating on Home Depot (HD) and lowered the firm’s price objective to $407 from $412, in a note given to TheStreet. The new target represents about 19.8% upside from the $339.69 share price cited in the report.

The small reduction reflects lower longer-term earnings estimates rather than a change in BofA’s broader thesis. The firm maintained its fiscal 2026 adjusted earnings-per-share estimate at $14.97 while trimming its fiscal 2027 forecast by about 1% to $15.95.

Bank of America sees strength beneath the housing slowdown

Home Depot reported fiscal second-quarter sales of $47.9 billion, up 5.7% from a year ago. Comparable sales increased 1.7%, while U.S. comparable sales rose 1.3%. Adjusted diluted earnings per share climbed to $4.92 from $4.68 a year earlier.

The retailer also reaffirmed its fiscal 2026 outlook, calling for total sales growth of roughly 2.5% to 4.5% and comparable sales growth ranging from flat to 2%. Adjusted diluted EPS is expected to grow between flat and 4% from fiscal 2025.

BofA’s optimism centers on Home Depot’s exposure to professional customers, which the firm estimates account for roughly half of sales. Nardone said the retailer’s higher Pro exposure should support continued outperformance even as the housing backdrop remains muted.

The quarter gave BofA more evidence for that view. Home Depot said companywide comps improved from 1.2% in May to 1.5% in June and 2.3% in July. Management also said Pro customers posted positive comps and outperformed DIY customers during the quarter.

Broad demand was another positive. Home Depot said 13 of its 16 merchandising departments posted positive comparable sales, with strength across categories including electrical, hardware, plumbing, paint and building materials.

Bank of America (BAC) analyst Christopher Nardone reiterated a Buy rating on Home Depot (HD) and lowered the firm’s price objective to $407 from $412.Bloomberg via Getty Images

Tariff refunds add a wrinkle to Home Depot’s outlook

BofA also flagged a less straightforward part of the quarter: tariff refunds boosted second-quarter profitability, while rising input costs remain a concern for the back half of the year.

Home Depot received $730 million in IEEPA tariff refunds during the quarter. Of that amount, $685 million reduced cost of goods sold, providing roughly a 145-basis-point benefit to gross margin.

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That helped offset about 60 basis points of higher costs tied to fuel, energy and other product inputs, according to Home Depot. Acquisition mix from GMS and Mingledorff’s created another roughly 60-basis-point headwind.

Management expects those higher costs to fully offset the tariff-refund benefit over the full year. Home Depot still reaffirmed its annual guidance, but BofA said the shift puts more focus on second-half cost pressure as the refund benefit fades.

Home Depot’s delivery push could support more share gains

BofA also pointed to Home Depot’s expanding delivery capabilities as another reason the company can keep taking market share.

Home Depot recently rolled out nationwide Express Delivery, which uses more than 2,000 U.S. stores as fulfillment hubs and can deliver thousands of products in three hours or less for a flat fee. The retailer also offers free same-day delivery on orders of $25 or more placed by 4 p.m.

The company expanded next-day delivery for key major appliances to about 60% of the U.S. population, a move BofA believes should help Home Depot compete for more time-sensitive purchases. Home Depot said it is already seeing a sales lift in markets where the faster appliance service is available.

Despite lowering its target, BofA still values Home Depot at 25.5 times its fiscal 2027 earnings estimate, above the firm’s cited long-term average. Nardone argues that premium remains justified by the retailer’s execution, resilience and ability to keep gaining share.

For investors, the near-term housing environment remains a drag. BofA’s call suggests Home Depot may not need a major housing recovery to keep putting distance between itself and weaker competitors.

Related: Home Depot is making a big bet on cautious consumers

Every windfall arrives with a silent partner. You see the gross number first and the government’s share much later.

Most people learn this with a bonus. Your employer withholds a flat percentage, the money lands, and you spend some of it. Months later a smaller refund explains what really happened.

That lesson gets expensive when the windfall is stock instead of cash. Equity does not carry a single tax rate. What you keep depends on what you hold, how long you have held it, and whether the sale counts as compensation or as an investment gain.

The rules also moved this year. One change that took effect at the start of the year makes a common equity decision cost more than the same decision cost last year, and the deadline to deal with it lands on Sept. 15.

Roughly $7 billion just landed in that gap.

OpenAI completed a secondary share sale totaling about $7 billion on Aug. 10, allowing current and former employees to sell stock at the company’s $852 billion valuation, according to CNBC.

The company bought the shares back with its own cash instead of bringing in outside investors, according to Bloomberg. It follows a $6.6 billion tender at a $500 billion valuation in October 2025 and a $1.5 billion offer in 2024.

The valuation held flat this time, the first of these deals that did not step the price up.

Why a tender offer is not the same as a paycheck

A tender offer is a company-run window in which employees sell some of their shares at a set price. For anyone paid mostly in equity, it is often the only chance to turn paper wealth into cash before an initial public offering, or IPO.

That structure is why the tax outcome is not uniform. Your neighbor at the same company, selling the same dollar amount on the same day, can keep a very different share of it.

Related: OpenAI just admitted something that has the AI industry on edge

The reason is the instrument. Vested shares held more than a year can qualify for long-term capital gains treatment, generally capped at 20% federally, plus the 3.8% net investment income tax.

Options you never exercised are different. The spread between your strike price and the sale price is generally compensation, taxed as ordinary income at rates up to 37%.

“Two people selling the same dollar amount of equity can walk away with materially different amounts,” said Slice Global Equity CEO Maor Levran, whose firm handles equity and tax compliance for companies with employees in multiple countries.

OpenAI completed a $7 billion employee tender offer on Aug. 10.hapabapa / Getty Images

What the 2026 alternative minimum tax reset changes for options

The more expensive change sits inside the alternative minimum tax, a parallel calculation that ignores several deductions the regular system allows and adds back items it does not tax. Exercising an incentive stock option and still holding the shares at year end is one of those add-backs.

Here is what changed, and what it costs:

The AMT exemption phaseout now starts at $500,000 of alternative minimum taxable income for single filers and $1 million for joint filers, down from $626,350 and $1,252,700 in 2025, the instructions for IRS Form 6251 noted.

The phaseout rate doubled to 50 cents on the dollar from 25 cents, so the exemption disappears twice as fast, according to the Tax Foundation‘s reading of IRS Revenue Procedure 2025-32.

The 2026 exemption is $90,100 for single filers and $140,200 for joint filers under that same procedure, and it is gone entirely at $680,200 and $1,280,400.

Employers may withhold a flat 22% on supplemental wages up to $1 million in a calendar year, with a mandatory 37% on anything above that, according to IRS Publication 15.

Third-quarter estimated tax payments for 2026 are due Sept. 15, the IRS confirmed.

Read those together and the trap is visible. An option exercise is priced off the company’s current valuation, and the bigger that spread, the more gets added to your alternative minimum taxable income. That happens at exactly the moment the exemption shielding that income has been cut back.

“The biggest mistake is looking only at the eventual tax rate and ignoring the cash required today,” Levran said. “You can end up paying a significant AMT bill to hold shares that you still can’t sell.”

For anyone who vested across two countries, the arithmetic gets harder. Both places may claim the same proceeds depending on where the work was performed, and treaties and foreign tax credits reduce double taxation without erasing the reporting problem. An employer’s payroll allocation, Levran said, is not necessarily the final tax answer.

How to size your tax gap before the September deadline

None of this is unique to one company. It is the shape of an entire liquidity wave.

SpaceX employees got the public-market version of the same lesson. The company priced its initial public offering at $135 a share on June 11 and began trading the next day.

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About 911.5 million insider shares became sellable on Aug. 6, by which point the stock had fallen more than 50% from its mid-June high, according to CNBC.

Those employees got liquidity and a moving price. OpenAI’s sellers got a fixed price and the same tax questions.

The practical work is the same either way. Find out what you actually hold, since a converted share, a restricted stock unit, and an unexercised option produce three different answers on identical proceeds.

Confirm the rate your employer withheld rather than assuming it covers the bill. Run the alternative minimum tax math before you exercise anything, not after.

The 22% that came out of your payout is a withholding convention, not your tax rate. The difference comes due on Sept. 15 or in April 2027, and it is far easier to find in a brokerage account now than in a checking account then.

Related: OpenAI’s answer to rising AI hacking risks has two tiers

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Why we love this deal

While emergencies may not happen very often, it’s important to be ready when they do. Thankfully, it’s easy to be prepared with all of the different options available. Whether you live somewhere that’s more prone to hurricanes, tornadoes, or wildfires, or you want to be ready for power outages or car failure while out on the road, emergency items like flashlights, chargers, and radios are all great choices. 

With the Jazmm 3-in-1 Solar Handcrank Charger Radio at Walmart, you can get all of those things in one. Both charging methods require no electricity, allowing you to charge your items, use the flashlight, and listen to the emergency radio without worrying about finding a plug or having a backup generator. At just $25, this is a great option to help you out in an emergency. Plus, it’s compact, so it can easily fit in a trunk or a closet. 

Jazmm 3-in-1 Solar Handcrank Charger Radio, $25 (was $31) at Walmart

Courtesy of Walmart

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Why do shoppers love it?

This radio is packed with features that are useful not only for emergencies, but also handy for road trips or camping. It has a 7400mWh battery and three built-in charging cables, including a lighting cable, a USB-C, and a micro USB, so you can charge three devices at once. With multiple ways to charge this device, it’s rare that it will run out of power, allowing you to stay ready. 

You can keep the device sitting in the window during the day to keep it charged when there is sunlight present, and the hand-crank option allows you to charge it when there’s no sun and no electricity nearby. Between emergencies, it can be used as a normal charger or light, which lets you make sure it’s still working and can help the battery run better overall. It’s suggested to use solar devices about every month to every three months, and to keep it sitting around 50% to 70% charge when not in use for long periods to help prolong battery life. 

Related: Amazon has an emergency item for $35 that doesn’t need electricity to function

The built-in flashlight has three modes to choose from, including low, medium, and high, and the radio has six LED reading lights that pop up from the top of the device, acting as a lamp. This is useful for illuminating general areas hands-free, instead of having to direct a bright light around, which can be useful in the car or a camping tent. It features a 120-decibel SOS alarm that creates a loud noise to help people find you in any situation. 

Details to know

Chargers: It features three types of chargers that allow you to charge three devices simultaneously.

Power: This device can be charged with solar power or a hand crank.

Radio: It offers real-time weather updates during large disasters with AM, FM, and NOAA weather radio channels.

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The Jazmm 3-in-1 Solar Handcrank Charger Radio is a great choice for anyone looking to stay ready. The charging options are easy to use, and the multi-light and multi-device-charging capabilities are convenient and ideal for situations without grid power. At just $25, this device is a no-brainer.

T-Mobile has lost a major ranking amid increased competition in the telecommunications market. 

Over the past year, T-Mobile has struggled with customer retention as AT&T and Verizon have ramped up promotions, discounts, and, more recently, lower-priced phone plans to lure price-conscious consumers. 

Cable operators have also become a growing threat as they roll out bundled phone, internet and cable TV deals to attract customers. For instance, in the first quarter of 2026, Spectrum added 406,000 new wireless lines, while Comcast gained 448,000, according to their latest earnings reports.  

Against this backdrop, and amid recent phone plan changes and price increases, T-Mobile Chief Financial Officer Peter Osvaldik said on an earnings call in July that the company expects its postpaid phone churn (the percentage of postpaid phone customers who ended their service) to be temporarily “elevated.”

T-Mobile suffers stock downgrade amid rising competition

As T-Mobile faces competitive headwinds, Wolfe Research has downgraded its outlook for the carrier’s stock performance, according to an analyst note unveiled in a recent Investing.com report. 

Wolfe Research lowered the stock’s rating from outperform, which indicates a stock will perform slightly better than the overall market, to peer perform, which suggests it will perform at the same level as other businesses in its industry. 

In the analyst note, Wolfe Research analyst Peter Supino expects T-Mobile’s revenue growth to be negatively impacted by mounting competitive pressures and recent investments, which will likely result in spending exceeding the $20 billion in flexible capacity mentioned in its long-term guidance. 

“Long-term revenue growth forecast risk tilts negatively as competition expands in T-Mo’s core,” said Supino. “Broadband and 6G investments could dampen capital returns and pressure leverage.”

Related: T-Mobile customers face new restriction when paying bills 

The firm expects T-Mobile to face sluggish ARPU (average revenue per user) growth after it discontinued several legacy wireless plans that launched almost 15 years ago. This change resulted in customers on these plans being automatically moved to higher-priced ones. 

Wolfe Research also predicts that Verizon and AT&T will grow rapidly and could even potentially match T-Mobile’s performance within the next four years, another reason for the downgrade in rating.

Supino also raised red flags around T-Mobile’s recent leadership departures. For example, after 21 years with the company, Callie Field stepped down as president of T-Mobile’s business group in September last year. 

More recently, Mike Katz left his position as T-Mobile’s chief business and product officer in July after 28 years and will serve as a strategic advisor at the company through December. 

Additionally, Supino raised concerns about reports that T-Mobile may merge with its parent company, Deutsche Telekom. However, this deal has allegedly been stalled due to worries from the carrier’s U.S. executives about potential regulatory issues, according to an Investing.com report in July. 

Supino said that the recent departures and potential merger spark questions about T-Mobile’s alignment of interests. 

Wolfe Research downgrades T-Mobile’s stock from outperform to peer perform amid competitive pressures. Bloomberg / Getty Images

T-Mobile faces a looming threat from SpaceX’s Starlink Mobile 

Concerns over T-Mobile’s ability to weather intensifying competition come at a time when SpaceX’s Starlink Mobile, which the carrier currently partners with to offer T-Satellite direct-to-cell service, is planning to build its own terrestrial network. 

This will be powered by its satellites and smaller terrestrial ground stations, which it plans to build. 

SpaceX Chief Operating Officer Gwynne Shotwell said during an earnings call on Aug. 4 that the company will begin launching its next-generation Starlink Mobile V2 satellites in 2027. 

These new satellites are built to provide 5G speeds from space, with 100 times the data density of Starlink’s first-generation V1 satellites. That added capacity means each satellite can handle up to 20 times more traffic. 

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For Starlink Mobile customers, that will translate into faster and more dependable service for browsing the internet, running data-heavy apps, streaming and making calls, with fewer service disruptions.

Shotwell said she believes Starlink Mobile could draw customers away from T-Mobile, AT&T, and Verizon with its upcoming terrestrial network.

“I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging basically the satellites in orbit.”

In an analyst note in July, TD Cowen analyst Gregory Williams warned that if SpaceX plans to offer terrestrial mobile service, it could significantly disrupt the wireless industry, especially if it doesn’t reach an MVNO (mobile virtual network operator) agreement with T-Mobile, AT&T or Verizon, according to a MarketWatch report. 

“Any entry of SpaceX could be highly bearish for the wireless industry,” said Williams. “As such, we are hopeful but not convinced that no carrier will budge and cave on an MVNO agreement.”

Related: T-Mobile excludes 2 generous customer perks from new phone plans

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.

Why we love this deal

It seems like summer just arrived, and yet already kids are packing up and heading back to school. For college folks, that includes a whole host of items in addition to the standard school supplies you pick up every August. Compact fridges, under-bed storage, and portable bathroom products to take on your trips to the hall showers, like the Dakimoe Shower Caddy, are all at the top of the list when it comes time to prepare for the back-to-school season, and making sure you invest in the right one and save money when you can is at the top of our back-to-school list.

The Dakimoe Shower Caddy is one of our favorite affordable products, already well-priced at just $25 at Walmart, but now, thanks to a Flash deal, it’s just $14 for a limited time. Save $11 and get the organization mesh bag perfect for keeping your products tidy and, most importantly, free of mildew and mold.. 

Dakimoe Shower Caddy, $14 (was $25) at Walmart

Courtesy of Walmart

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Why do shoppers love it?

Shower caddies like the ones students use in college dorms and apartments typically are made of mesh or plastic, and both materials have their merits. Plastic is easier to clean and more likely to collect mildew or mold from soap and water buildup if you’re not careful, but it’s often harder to neatly pack items together, with no room for pockets or slots for organization. Mesh, as long as you properly drain excess water and keep it clean, usually has more room for shampoos, conditioners, and soap, while also allowing you to better organize it with pockets and slots. 

The caddy, which measures 19.4 inches long, 5.9 inches wide, and 10.4 inches high, has a square cube shape and is made with waterproof Oxford fabric and mesh. It’s engineered with a quick-dry construction to ensure that wet items are separated properly, preventing mildew and unpleasant odors, while also being flexible and more pliable to fit large or oddly-shaped bottles and fold completely when it’s not in use.

With a large hook for easy hanging in the shower or on the back of your door, this all-in-one caddy is super roomy, with seven interior flexible slots and pockets for things like toothpaste, a toothbrush, a hairbrush, and other smaller or thinner items. You can also choose to forgo using the slots and fit up to four full-sized bottles of shampoo, conditioner, body wash, and lotion. The top of the caddy has an additional pocket, and the exterior has two mesh side pockets as well. There’s even a waterproof, clear front pouch for your smartphone. It protects your device while still allowing you to use its touchscreen abilities.  

Related: College dorm room storage and organization is up to 53% off at Walmart

This multi-pocket, multi-functional caddy is ideal for dorm life but just as usable for those still at home who need some organizational help. It’s also great for travel. Pack it in your suitcase and use it to keep all of your toiletries in one place while staying in hotels to prevent accidentally leaving something behind. 

Details to know

Material: Waterproof Oxford fabric

Dimensions: The bag measures 10.4 inches long, 5.9 inches wide, and 10.4 inches high.

Colors: Two. 

Features: The foldable bag has seven interior pockets, a lid interior pocket, exterior mesh side pockets, a large hanging hook, and a waterproof, front clear pouch for your smartphone.

Perfect for everything from the dorm shower to a weekend getaway to a daily trip to the pool, this shower caddy offers a lot of space to fit all your bath and shower products. A big hit with college kids who have community bathrooms, it is very sturdy, dries out well, and it’s super handy for keeping hair products, body wash, and small accessories nice and organized. 

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Keep your products organized and easily accessible, whether you live in a dorm or are headed away for the weekend, with the Dakimoe Shower Caddy.

A new Wall Street study just put real numbers behind something workers have suspected for years. Artificial intelligence isn’t just changing how people work; it’s also changing who gets hired.

Goldman Sachs spent months tracking the data across multiple countries, and the picture that emerged is more specific and useful than the usual AI doom headlines.

Goldman Sachs AI jobs report: entry-level workers and call-center employment 2026

Artificial intelligence has started to weigh on the labor markets across major developed economies, but effects vary by industry and level. Goldman found that industries with greater AI exposure have generally seen slower job openings growth since the second half of 2022, a pattern especially pronounced in the United States.

Information and communication services, among the most AI-exposed industries, have seen slowing employment growth across nearly every major developed economy since 2022, according to BeInCrypto, Goldman said in the report published Aug. 19.

Outside the U.S., though, employment in those industries still sits near or above its long-term trend.

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Call centers stand out as the clearest example. Employment in the industry is now 39% below trend in the U.S., 33% below trend in Canada, and 27% below trend in Germany, Goldman found, alongside similar declines in software publishing, management consulting, and advertising.

The pain isn’t spread evenly by age or experience, either.

Goldman analyzed employment growth across more than 800 occupations and found AI-related headwinds were strongest among entry-level workers, with a smaller but still negative effect on occupations Goldman considers highly exposed to displacement, CNBC reported.

AI job losses of 16,000 per month: what Goldman payroll data show

This isn’t the first time Goldman has flagged the trend. The bank has estimated AI could displace roughly 15 million American workers over the next decade, about 9% of the workforce.

The forecast landed the same month June payrolls came in at just 57,000, less than half of what economists expected, according to TheStreet.

Peng broke the monthly job picture into two columns. The substitution column, where AI replaces a human outright, runs at about 25,000 a month. The augmentation column, where AI creates adjacent work, adds back roughly 9,000.

That leaves a hole of about 16,000 every month. By June, the hole had narrowed to about 11,000. Data-center construction was the reason, not any slowdown in what AI was doing to white-collar work.

Younger workers are absorbing most of that gap. Major employers, including Amazon, Oracle, and Meta, have all made deep cuts this year amid an aggressive AI investment push, adding to the pressure on workers trying to reenter the job market.

Goldman Sachs analyzed employment growth across more than 800 occupations.Angela/Getty Images

AI adoption unfolds amid employment slowdown, Fed rate-cut pressure

The employment slowdown is unfolding as AI adoption keeps climbing.

Goldman combined 11 separate surveys measuring AI adoption and found that major developed economies now sit at adoption rates of roughly 15% to 20%, led by France, the U.S., the Netherlands, and the U.K. Meanwhile, Italy, Japan, and New Zealand trail behind, BigGo Finance noted.

That combination, rising AI adoption alongside softer hiring, is exactly what has the Federal Reserve paying closer attention.

A New York Fed study found AI is more likely to reshape jobs than trigger a sudden spike in unemployment in the near term.

But the bank cautioned that AI could gradually restructure the labor market, wages, and productivity, creating longer-term complications for policymakers trying to balance the Fed’s dual mandate of price stability and maximum employment, according to TheStreet.

Goldman economist Joseph Briggs has framed the stakes directly for markets. “If we see some job losses pulled forward, that sets the stage for potential underperformance relative to our forecast, and that may lead the Federal Reserve to cut rates,” he said.

July payrolls were down 23,000. Unemployment was 4.1%. Those two numbers don’t usually move together.

Payrolls drop when people lose jobs. Unemployment drops when people find them. Something in the middle is happening, and Goldman’s data is one of the better attempts to explain what.

What Goldman Sachs’ AI labor market warning means for workers, job seekers

There are no mass layoffs in Goldman’s data. What there is: a manager whose team of five used to handle a workload that three people can now cover with AI tools.

Two positions just quietly disappeared from next year’s headcount plan. No announcement. No severance. The jobs never came back.

That distinction matters for how the labor market evolves going forward. The reason early AI deployment hasn’t visibly hurt workers more is that the occupations most exposed to AI were already short-staffed, giving the market a built-in cushion.

That cushion is largely gone now, and the next wave of automation is likely to land on occupations that are no longer running short on candidates.

For all the young workers and policymakers, the practical takeaway is to watch the adoption rates and entry-level hiring as leading indicators, and not the unemployment rate.

As Goldman’s own data show, the real pressure builds well before it shows up there.

Related: Bank of America gives surprise verdict on AI, U.S. jobs 

It’s not often that a small drug company convinces Wall Street’s big banks that its stock could double.

Nuvation Bio (NUVB) just got that call.

On Tuesday, Aug. 18, 2026, JPMorgan started covering the stock with an Overweight rating, which is the firm’s way of saying it expects the shares to beat the market. 

The bank set a price target of $13, roughly double where the stock recently traded.

A price target is an analyst’s estimate of where a stock could go over a set period, and JPMorgan’s target runs through Dec. 2027. So this is a long-term call, not a quick trade.

The reason for the bank’s optimism is a product that reached the market this year.

Here is what the call means for investors — and where the risks are.

What is behind JPMorgan’s 100% upside call on Nuvation Bio

JPMorgan’s confidence rests mostly on IBTROZI, a lung cancer pill that Nuvation launched earlier in 2026.

The drug treats a specific group of non-small cell lung cancer patients whose tumors carry a change in a gene called ROS1. It works as a targeted therapy, meaning it goes after that specific genetic driver instead of attacking cells broadly the way older chemotherapy does.

Related: UBS strongly resets Lilly stock target

IBTROZI reached the market at a good moment for the company. In the first half of 2026, it became the most prescribed ROS1 targeted therapy for both new patients and first-time treatments, according to Investing.com.

That early lead matters because it shows doctors are choosing the drug quickly, which is the clearest sign a new medicine can grow into steady revenue.

How IBTROZI’s fast start showed up in Nuvation’s earnings

The strong sales are no longer a projection. It appeared in the company’s most recent quarter.

On Aug. 6, 2026, Nuvation reported second-quarter revenue of $31.7 million, ahead of the roughly $27 million analysts expected, according to a press release. Net product sales from IBTROZI made up $23.2 million of that total.

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The company still lost money, though. Adjusted loss came in at 18 cents a share, three cents worse than expected, as Investing.com noted. That gap between rising sales and continued losses is normal for a young drug company. 

Nuvation is spending heavily to build its sales force and push more drugs through testing, which eats into profit today in exchange for a shot at bigger revenue later.

The revenue side of the story is working faster than expected, even as profits stay negative for now.

The second drug that could widen Nuvation’s opportunity

IBTROZI is not the only reason JPMorgan likes the stock. The bank also pointed to safusidenib, an experimental drug for a type of brain tumor called IDH1-mutant glioma. 

JPMorgan sees strong sales potential if the drug clears its remaining studies.

Safusidenib is still in testing, so it carries no revenue yet. The key data that will show whether it works, called progression-free survival readouts, are still years away.

That timeline is worth remembering. One drug, IBTROZI, is already selling, while the second is years away from proving itself.

A stock with one commercial product and one promising candidate can move sharply in either direction on trial news.

Why the stock looks cheap compared with its own history

Part of JPMorgan’s argument is that Nuvation trades well below its past valuation.

The stock’s price-to-sales ratio, which compares its market value to its yearly revenue, sits near 14.8. 

JPMorgan sees room for the shares to rise if sales keep climbing, since the ratio is still low for a commercial-stage cancer drug maker.

A low price-to-sales figure alone does not make a stock a bargain. It only helps if the company keeps growing revenue, which is exactly the bet here.

Nuvation’s stock has actually fallen about 18% since the start of 2026, closing near $6.48 before JPMorgan’s call. Over the past five trading days, though, the shares gained about 8%.

That mix of a weak year and a recent bounce is the setup JPMorgan is stepping into.

The risks every Nuvation investor should weigh first

The upside case comes with real dangers, and they deserve equal attention.

Small biotech companies that depend on one or two drugs can lose most of their value if sales slow or a trial fails. Nuvation fits that profile.

A few specific risk factors stand out:

Key risks for Nuvation Bio investors

The stock carries a beta of 1.52, meaning it tends to move about 52% more than the overall market, according to MarketBeat.

The stock has traded as high as $9.75 over the past year, showing how wide the swings can be.

The company posts a negative net margin near 88% and a negative return on equity around 47%, so standard profit measures do not yet apply.

Insiders have been net sellers of the stock in recent months, a cautious signal from the people who know the company best.

To fund its spending, Nuvation raised $250 million through a 0.75% convertible notes offering in June 2026.

The amount grew to $287.5 million once underwriters fully exercised the over-allotment option. 

The company also has a pending $30 million milestone payment tied to European IBTROZI approval, expected in the first half of 2027, from partner Eisai.

That cash gives the company room to operate, but it also shows how much money a biotech burns before it turns a profit.

Nuvation Bio’s lung cancer drug IBTROZI is driving the company’s first real sales.SOPA Images / Getty Images

Where the rest of Wall Street stands on Nuvation Bio

JPMorgan is bullish, but it is not standing alone, and it is not the most aggressive voice either.

Nuvation holds a Strong Buy consensus rating. All eight analysts covering the stock rate it a Buy, with an average price target of  $14.86.

That average is above JPMorgan’s call, which means that even among believers, opinions on how far the stock can run vary a great deal.

What Nuvation still needs to prove

A 100% gain is a target, not a promise, and several things must go right first.

IBTROZI needs to keep taking market share, not just win early adopters. 

The company’s next earnings report, expected around Nov. 2, 2026, will show whether the sales momentum held through the third quarter.

Safusidenib needs clean trial data before it can add meaningful revenue, and that answer is years out.

For investors, the practical approach is to treat Nuvation as a higher-risk position rather than a core holding. The reward could be large, but so could the loss if a single drug stumbles.

Watch the November earnings report and the drug’s prescription trends to see whether the target is realizable.

Related: Goldman Sachs sees writing on the wall for Eli Lilly stock

Fidelity Investments’ first-quarter data puts the average balance in employer-sponsored 401(k) retirement plans for savers aged 50 to 54 at $215,700.

That figure covers 25.6 million participants across 26,800 employer-sponsored plans. It also falls $234,300 short of what the same firm says they need.

Fidelity’s widely cited savings guideline calls for six times your annual salary by age 50.

On a $75,000 income, the target is $450,000, and the average saver in that cohort holds less than half of what the firm considers adequate. A federal rule that took effect in January 2026 adds a second problem: the 401(k) catch-up contribution now offers tax conditions that some employer plans cannot support.

Fidelity’s $215,700 average sits $234,300 below its own target

A Motley Fool analysis published August 15, 2026 cited Fidelity’s $215,700 figure and framed it as a competitive marker, telling readers, “If your 401(k) balance is higher, you’re ahead of the game.”

Fidelity’s savings schedule sets a much higher bar: one times salary saved by 30, three times by 40, six times by 50, and 10 times by 67.

The targets assume a 15% savings rate starting at age 25 and retirement at 67, Fidelity noted. Savings is expected to provide about 45% of pre-retirement income, with Social Security filling the rest.

David Schneider, president of Schneider Wealth Strategies, told Kiplinger for its June 8, 2026 401(k) analysis that market moves are unpredictable, but the savings rate is the variable workers actually control.

You can’t control or predict market behavior, but you can decide how much you save…Your savings rate is probably the single-most important determinant (in building) long-term wealth

On a $75,000 salary, the six-times milestone is $450,000. At $215,700, the average saver sits at roughly 2.9 times salary, producing a $234,300 gap.

The Motley Fool piece also suggested that if a 50-year-old’s balance is below average, ‘you’re probably not going to be able to take advantage of catch-up contributions.’

Catch-up eligibility is based on age alone, not on account balance, according to IRS guidance on catch-up contributions, but affordability is a separate constraint.

Median 401(k) balances make Fidelity’s shortfall look even wider

Averages in retirement data skew upward because a small number of large accounts pull the mean above where most savers land. The median, the balance at the exact midpoint, paints a more accurate picture.

The median 401(k) balance for workers aged 45 to 54 was $78,730, Vanguard’s 2026 ‘How America Saves’ report found. On a $75,000 income, that range represents roughly 0.8 to 1.0 times salary, well short of the six-times benchmark.

The participation gap compounds the savings gap. About 72% of private-sector workers had access to a workplace retirement plan as of March 2025, and 53% participated, the Bureau of Labor Statistics reported.

Median 401(k) balances reveal how far typical workers may fall short of Fidelity’s retirement savings benchmarks, with participation gaps adding further pressure.Riska / Getty Images

A 2026 Roth rule affects catch-up contributions

Workers aged 50 and older can defer up to $32,500 into a 401(k) this year, according to the IRS, and that total combines a $24,500 base with an $8,000 catch-up.

A separate SECURE 2.0 provision creates a super catch-up for workers aged 60 to 63, raising the total to $35,750. On a $75,000 salary, deferring $32,500 consumes 43% of gross pay, an impractical rate for most households.

The SECURE 2.0 Act’s Roth catch-up mandate took effect January 1, 2026. It requires workers aged 50 or older who earned more than $150,000 in FICA wages from their employer in 2025 to direct all catch-up contributions into a Roth account on an after-tax basis.

More Fidelity:

Fidelity breaks down IRA rules that catch heirs off guard

Fidelity says retirement health costs just hit a new high

Fidelity warns Roth IRA conversions can backfire

“If the plan does not permit Roth deferrals, these employees cannot make catch-up contributions,” CAPTRUST noted in its compliance guidance on the mandate

By the end of 2024, 86% of Vanguard-recordkept plans offered a Roth feature, rising to 95% among larger plans, and 93% of the 401(k) plans surveyed by the Plan Sponsor Council of America offered the option in 2023.

Plans without a Roth option lock affected high earners out of catch-up contributions entirely. “If your plan does not offer a Roth 401(k) option, you won’t be able to make catch-up contributions,” Fidelity confirmed.

Three levers that close the gap

The gap at 50 is wide, but Fidelity’s modeling shows where action can make a difference. A saver with $215,700 today could reach roughly $681,000 by age 67 at a 7% annual return without adding another dollar. 

Reaching $750,000 would require about $170 a month in additional savings. For someone closer to the $78,730 median balance, however, the required contribution rises to roughly $1,275 a month. 

Fidelity outlines three levers savers behind on the 6x-by-50 benchmark typically use to close the gap: raising contributions, delaying retirement past 67, or claiming Social Security later.

Related: Fidelity warns American workers on 401(k), IRA mistakes

Seth Klarman’s latest portfolio sends a powerful message to an investor whose reputation was built on buying with a “margin of safety.” When he discovers something he likes, he’s willing to make it matter.

Klarman’s Baupost Group ended the second quarter with approximately $5.42 billion in U.S.-listed securities, up from about $5.12 billion in the prior quarter, according to the portfolio analysis provided. But the headline isn’t simply that the portfolio grew.

That’s where Klarman invested more money.

Amazon (AMZN) became Baupost’s largest disclosed stock holding at 16.48% of the portfolio, after the firm increased its position by roughly 20% during the quarter. Based on the reported $5.42 billion portfolio value, that percentage implies an Amazon stake worth roughly $893 million at quarter-end.

There is a human lesson behind all those figures for the average investor. Klarman is famed for anticipating what can go wrong. But his recent filing demonstrates that caution doesn’t necessarily imply sitting on the sidelines. That sometimes involves being very selective in where you take risks.

Seth Klarman builds Amazon into his No. 1 stock position

Baupost first established its Amazon position during the fourth quarter of 2025, according to the supplied portfolio analysis. It then upped the ante by some 47% in the first quarter of 2026 and added a further approximately 20% in the second.

That’s a pretty quick trip to the top of a very concentrated business for Amazon.

The underlying business is part of the appeal. Amazon is not only the online store where households buy toothpaste, electronics, and groceries. Its businesses range from e-commerce and advertising to Amazon Web Services, offering investors a piece of both consumer spending and the massive corporate drive to construct artificial-intelligence infrastructure.

Such diversity is important when considering why a normally value-conscious investor would make such a significant bet on a technology powerhouse.

Klarman also isn’t making Amazon his sole big bet. Over the quarter the company boosted its stake in Alphabet by almost 16%. The stock accounted for 8.95% of Baupost’s declared portfolio.

Alone, Amazon and Alphabet made up over 25% of the declared portfolio.

Key moves in Baupost’s Q2 portfolio

Amazon: Increased roughly 20%; now 16.48% of the portfolio.

Alphabet: Increased roughly 16%; now 8.95%.

Genuine Parts: Position increased roughly 90%.

Norwegian Cruise Line: Position more than doubled.

CME Group: New position representing 2.52%.

Willis Towers Watson: Position eliminated.

Vaxcyte: Position eliminated.

Restaurant Brands: Reduced roughly 16%.

Union Pacific: Reduced roughly 23%.

WESCO International: Reduced roughly 55%.

And Klarman’s determination to focus is more than that. The data provided shows about half of Baupost’s declared 13F holdings were in its five largest positions: Amazon, Elevance Health, Restaurant Brands International, Alphabet, and Ferguson Enterprises.

Amazon just climbed to the top of Seth Klarman’s portfolioBloomberg / Getty Images

Klarman is finding value far beyond Big Tech

The more telling element of the filing, perhaps, is what happened beyond Amazon and Alphabet.

The company increased its position in Genuine Parts (GPC) by nearly 90%. You don’t ordinarily equate an auto and industrial replacement-parts company with the market’s buzz around AI.

But its numbers provide some context. Genuine Parts reported second-quarter sales of $6.5 billion, up 6% year over year, including 3.4% comparable-sales growth. Its industrial operation generated $2.4 billion in sales, up 7.1%.

That’s another flavor of basic pick-and-shovel economics. Cars break down. Factories require parts to replace the old ones. No matter how much they dominate the financial news, companies keep buying parts.

The investigation also showed Baupost more than doubling its holding in Norwegian Cruise Line Holdings (NCLH) to create an approximately 3% portfolio position. Norwegian’s investor-relations site shows it released its latest quarterly earnings July 30.

Then there is a brand new bet: CME Group (CME).

Baupost opened a new stake that accounts for 2.52% of its declared portfolio. CME is the operator of the derivatives marketplace where investors and companies exchange futures and options linked to interest rates, equities, commodities, and other assets.

It’s worth noting the timing. CME reported revenue of $1.7 billion and net income of $1 billion in the second quarter, while average daily volume hit 29.8 million contracts. Market data sales increased 20% to a record $238 million.

That is, Klarman isn’t merely pursuing everything with AI attached to it. His portfolio blends leading technological platforms with healthcare, restaurants, industrial companies, travel, and the infrastructure of financial markets.

What Klarman’s portfolio tells everyday investors

A key drawback of a 13F filing is that it is a backward-looking snapshot of some of the U.S.-listed holdings, not a real-time view into everything an investment manager owns.

That distinction is particularly relevant with Baupost.

Based on the information provided, 13F securities account for less than 15% of Baupost’s total assets under management historically, with the rest split among cash, debt, real estate, and hedges, for example. Therefore, duplicating individual holdings would not result in Klarman’s actual portfolio or risk profile.

Still, the filing provides an invaluable glimpse into his thinking.

Where he saw opportunity, Klarman was aggressive; elsewhere he was just as eager to stay away. Baupost sold out of Willis Towers Watson and Vaxcyte and cut back heavily on investments like WESCO, Union Pacific, and Restaurant Brands.

That might be the most essential message for the individual investor.

Stubbornness is not the same thing as concentration.

Amazon accounts for over a sixth of Klarman’s stated equity portfolio, with about half in five firms. But the same file shows that Klarman has increased, cut, and slashed positions.

It feels less like a strategy of owning everything and more a strategy of selecting what risks are worth cash.

And right now, among Baupost’s publicly disclosed stocks, Amazon has earned the biggest piece of Klarman’s portfolio.

Related: Inflation a ‘Real Danger to Markets’: Hedge-Fund CEO Klarman

A major restaurant company is continuing to trim its footprint as it works to strengthen some of its biggest brands, with more closures ahead.

The latest shutdowns come as the company navigates a broader turnaround plan that includes updating restaurants, improving the customer experience, and reassessing its store base. While sales have remained positive across much of the business, traffic trends remain a challenge at some of its most recognizable chains.

Founded in 1988 in Tampa, Florida, Bloomin’ Brands Inc. is one of the world’s largest casual dining companies with more than 1,440 restaurants across 46 states, Guam, and 12 countries. Its portfolio includes Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar.

Bloomin’ Brands restaurant closures

During the second quarter of fiscal 2026, which ended June 28, Bloomin’ Brands (BLMN) closed nine restaurants across its system while opening five, leaving the company with 1,448 locations at the end of the quarter. Four of the closures were company-owned restaurants, and five were franchised.

The closures were concentrated at two of its brands.

Outback Steakhouse: Closed four U.S. locations, leaving 659 restaurants.

Outback Steakhouse International: Closed four locations, leaving 354 restaurants.

Fleming’s Prime Steakhouse & Wine Bar: Closed one U.S. location, leaving 64 restaurants.

Bloomin’ Brands also opened one company-owned Outback Steakhouse restaurant and four internationally franchised Outback Steakhouse locations in Brazil during the quarter.

The company’s restaurant count fell by four locations during the quarter, as nine closures outpaced five openings.

Bloomin’ Brands has been reshaping its restaurant footprint as part of a broader effort to improve performance and focus investment on locations with stronger growth potential.

Bloomin’ Brands continues restaurant closures.Victor J. Blue/Bloomberg via Getty Images

Why Bloomin’ Brands is closing locations

Bloomin’ Brands’ latest results show a mixed picture for its restaurant portfolio.

Revenue increased 1.3% year over year to $1.02 billion during the second quarter, while comparable U.S. restaurant sales climbed 2.3%. The company also raised its full-year 2026 U.S. comparable-sales outlook to between 1% and 2%, compared with its previous range of 0.5% to 2.5%.

At the same time, customer traffic declined across several of its brands.

Outback Steakhouse’s U.S. traffic fell 2.8% during the quarter, even as comparable restaurant sales increased 1.4% and average check per person rose 4.2%.

Fleming’s Prime Steakhouse & Wine Bar also reported a 2.8% decrease in U.S. traffic, while comparable restaurant sales climbed 1.6% and average check per person climbed 4.4%.

The trends were not uniform across the company’s portfolio. Bonefish Grill reported an 8.1% increase in comparable sales and a 4.5% rise in traffic, while Carrabba’s Italian Grill’s comparable sales were up 1.7%, despite a 2.5% decline in traffic.

That combination of positive sales and weaker traffic illustrates how higher customer spending can help offset fewer visits, but companies still need to ensure individual locations can generate sustainable returns.

Bloomin’ Brands’ second-quarter results also showed that its restaurant-level operating margin increased to 12.4%, compared with 12% a year earlier. The company attributed the improvement primarily to higher average checks, productivity initiatives, and lower pre-opening costs, partially offset by higher commodity, labor, and operating expenses.

Bloomin’ Brands turnaround strategy and Outback Steakhouse closures

Bloomin’ Brands has been pursuing a multi-year turnaround strategy focused primarily on Outback Steakhouse since announcing the plan in November 2025.

The strategy centers on four areas: improving the dine-in experience, strengthening brand relevance, rebuilding its culture, and investing in its restaurants. The company is also using productivity savings and disciplined capital allocation to support those investments.

Here’s some of my previous coverage of restaurant closures:

Popular breakfast chain closes half its restaurants

Restaurant giant quietly closes locations across major brands

Fast-growing chicken chain closes 207 restaurants, cuts expansion

As part of the strategy, Bloomin’ Brands closed 21 U.S. restaurants in 2025 and chose not to renew the leases on 22 additional U.S. locations. The company said the majority of those leases were set to expire over the following four years.

Restaurant closures are only one part of the company’s strategy. Bloomin’ Brands is also investing heavily in upgrading its existing locations.

During its second-quarter earnings call, CEO Mike Spanos said the company completed approximately 31 Outback Steakhouse refreshes through the end of July and was on track to complete around 85 during 2026.

The company expects to spend $350,000 to $400,000 per refresh, with a goal of refreshing 100% of Outback Steakhouse restaurants by the end of 2028.

The refresh program is intended to improve the restaurant environment and support the company’s broader effort to bring customers back to its locations.

Bloomin’ Brands has also adjusted its expected spending on the broader turnaround. Management said its total 2026 turnaround investment is now expected to be about $36 million, down from the previously expected $50 million, while productivity savings remain on track for approximately $30 million.

“I am pleased with our financial results in the second quarter and our continued progress on the Outback Turnaround,” Spanos said in the company’s earnings report. “We remain focused on consistency of execution across food, service, experience, and affordability to deliver a great guest experience.”

For Bloomin’ Brands, the latest closures are part of a larger effort to reshape its restaurant base while investing heavily in locations it believes have the strongest potential for long-term growth.

Related: 17-year-old Mexican restaurant chain closes all locations