Author: Chris Katje

Beer company Constellation Brands Inc (NYSE:STZ) has become a new favorite of Berkshire Hathaway Inc (NYSE:BRK)(NYSE:BRK) with the Warren Buffett-led conglomerate adding the stock in recent quarters. The company expects to report second-quarter results on Monday after the market closes.

Here are the earnings estimates, what analysts are saying ahead of the report and key items to watch.

Earnings Estimates: Analysts expect Constellation to report second-quarter revenue of $2.46 billion. That’s down from $2.92 billion in last year’s second quarter, according to data from Benzinga Pro.

The company missed analyst estimates in the first quarter, but beat analyst estimates in six of the last 10 quarters.

Analysts expect Constellation Brands to report second-quarter earnings per share of $3.38, down from $4.32 in last year’s second quarter.

The company missed earnings per share estimates in the first quarter. It beat analyst estimates in nine of the last 10 quarters overall.

Read Also: Warren Buffett Unfazed By Trump’s Tariff Threats: Oracle Of Omaha Bets On Mexico, Beer

What Analysts Are Saying: Analysts have been lowering their price targets on Constellation Brands ahead of the quarterly results.

Bank of America Securities analyst Peter Galbo lowered his price target from $182 to $150. The analyst also downgraded the stock from Neutral to Underperform.

Beer consumption is soft, he says. That could hurt the company’s sales and margins.

“Compounding this slowing consumption are more difficult 3Q YoY compares,” Galbo said. Also, there’s pressure on the company’s core Hispanic demographic.

Here are other recent analyst ratings on Constellation Brands and their price targets:

• UBS: Maintained Buy rating, lowered price target from $205 to $175
• Goldman Sachs: Maintained Buy rating, lowered price target from $196 to $168
• Wells Fargo: Maintained Overweight rating, lowered price target from $170 to $155
• Citigroup: Maintained Neutral rating, lowered price target from $155 to $145

Key Items to Watch: Constellation Brands has become a favorite of Buffett and Berkshire Hathaway. The conglomerate disclosed a stake in the company in the fourth quarter of last year and has added to the position multiple times.

In the first quarter, the stake was disclosed as being up by 114%. In the second quarter, the stake increased by 12%.

The third quarter disclosure could reveal another increased stake. Right now, Berkshire Hathaway owns 13.4 million shares worth $1.9 billion, according to data from CNBC. While Constellation Brands represents only 0.6% of the Berkshire Hathaway investing portfolio, the stake is good for around 7.6% ownership of the beer company.

The stake by Buffett and company could signal that shares are undervalued and see more investors watching for signs of a rebound in the quarterly sales figures, margins and guidance.

Constellation Brands stock has been hit by fear of the impact from tariffs with Mexico among the countries targeted by President Donald Trump.

Benzinga recently reported that Constellation’s Modelo Especial beer lost its title of being the bestselling beer in America. The beer brand took the title from Bud Light in 2023 and has now lost the crown to Michelob ULTRA.

Anheuser-Busch InBev’s gain comes from Constellation seeing weaker demand for Modelo Especial in recent months. Hispanic buyers are buying less beer due to higher prices, a weak job market, and immigration concerns, according to CEO Bill Newlands. Hispanic buyers reportedly account for around half of Constellation’s beer business.

Constellation previously lowered its full-year guidance earlier this year, with net beer sales expected to decline 2% to 4%, compared to a previous range of flat to a gain of 3% year-over-year. Analysts and investors will be looking to see if guidance has improved.

STZ Price Action: Constellation Brands stock is down 2.4% to $138.75 on Monday versus a 52-week trading range of $131.20 to $247.63. Constellation Brands’ stock is down 37.7% year-to-date in 2025.

Read Next:

• Market Expert Jay Woods Highlights ‘Interesting’ Trades By Warren Buffett: ‘Is The Style Of Berkshire Getting More Active Than Passive?’

Image: Shutterstock

The SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500, made several new all-time highs in the month of September and during the first three quarters of 2025.

Freedom Capital Markets Chief Market Strategist Jay Woods tells Benzinga there could be more highs on the way in the fourth quarter. Here’s a look at Woods’ thoughts on the S&P 500, rate cuts, tariffs and more, as the fourth quarter kicks off.

Market Shrugs Off Headlines

With headlines around tariffs, unemployment and international relations, Woods said the surge in market indexes shows that investors are less concerned now than earlier this year.

“The bottom line is the market has been shrugging off headlines,” Woods told Benzinga.

Woods said the market rally is “head scratching” given the concerns investors had in April after Liberation Day.

“The president has been known to give us volatile headlines.”

The market expert said that even recent headlines about Russia and Ukraine, as well as Federal Reserve Chairman Jerome Powell’s statement that the market is “fairly highly valued,” couldn’t spook the markets.

This year reminds Woods of 2017, the first year of Donald Trump‘s first presidential term, when there were 12 months of volatile headlines and the markets were up every single month of the year.

Read Also: Market Expert Jay Woods Highlights ‘Interesting’ Trades By Warren Buffett: ‘Is The Style Of Berkshire Getting More Active Than Passive?’

Big Tech To Shine In Q4

With the strong market returns in the first three quarters, Woods said some investors who have been on the sidelines due to headline risk may now “have to chase performance.”

“This market is poised to continue to grow,” Woods told Benzinga.

While some themes like quantum and nuclear could continue to be hot, Woods prefers to stay patient and “stick with what’s working.”

Woods said the Magnificent 7 and big technology stocks will likely be strong performers in the fourth quarter, as they are poised technically and fundamentally to rally.

NVIDIA Corporation (NASDAQ:NVDA) goes into the fourth quarter near all-time highs and could benefit from continued AI spending.

“The constant theme of capex spend” makes companies like Nvidia the biggest beneficiaries, Woods added.

“Nvidia poised to go higher.”

Woods said the world’s most valuable company is undervalued from a price-to-earnings perspective and shares could hit $200 by the end of the year.

Woods said Amazon.com Inc (NASDAQ:AMZN) is up marginally in 2025 and trying to break out. Apple Inc (NASDAQ:AAPL) is another stock that is finally up for the year and could see a breakout in the fourth quarter.

“Could go on a little bit of a run,” Woods said of Apple.

Woods also highlighted Broadcom Inc (NASDAQ:AVGO), which is not a Magnificent Seven stock, but has been helping to lead the market higher.

“The AI spend still there.”

When including Broadcom with the Mag 7, the eight stocks make up around 38% of the S&P 500, which is a historical high.

“When the market goes up, it’s gonna be on the shoulder of these giants.”

Woods said now is not the time to pull back from the technology giants when looking for the next big investments for the fourth quarter.

When asked whether the Nasdaq 100, S&P 500, Dow Jones Industrial Average or Russell 2000 will have the best performance in the fourth quarter, Woods was confident in selecting one of the four major indexes.

“I would go with the Nasdaq 100.”

Woods said those stocks are poised to be the best performers in the fourth quarter.

Small Cap Breakout Or Fake Out?

Woods highlights the recent breakout of the small caps, which are often represented by the iShares Russell 2000 ETF (NYSE:IWM).

“Can this momentum continue?” Woods asks.

Woods said he is a noted hater of small caps after being burned several times before in rallies of the sector.

“I still don’t know if the small caps have the power to go higher.”

The market expert said the rally in small caps could be determined by future Federal Reserve policy, with the market likely pricing in three rate cuts before the end of the year.

Woods said the 10-year treasury yield going below 4% could be the catalyst to get small-cap stocks to show further gains in the fourth quarter or early 2026.

The X Factor In Q4 Noone Is Talking About

While Woods is confident that markets will trade higher in the fourth quarter, there is one x-factor that could increase volatility.

Woods said the x-factor for the fourth quarter is the Supreme Court decision on tariffs, a decision that could determine tariffs are illegal and have to be paid back.

“That throws off everything,” Woods said.

Woods said there was high uncertainty in the market around Liberation Day and the same uncertainty could be created by this Supreme Court ruling.

Read Next:

• EXCLUSIVE: Tesla ‘An Elon Musk And A Technology Story First, EV Story Last’ — Market Strategist Explains Why To Buy The Stock

Photo: Shutterstock

Apparel and footwear giant Nike Inc. (NYSE: NKE) could provide an update on its continued turnaround and how tariffs are impacting the business when the company reports first-quarter financial results Tuesday after market close.

Here are the earnings estimates, what experts are saying ahead of the report and the key items to watch.

Earnings Estimates: Analysts expect Nike to report first-quarter revenue of $11.0 billion, down from $11.59 billion in last year’s first quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in three straight quarters and in six of the last 10 quarters overall.

Analysts expect Nike to report first-quarter earnings per share of 27 cents, down from 70 cents per share in last year’s first quarter.

The company has beaten analyst estimates for earnings per share in eight straight quarters and in nine of the last 10 quarters overall.

Read Also: Nike’s Sales, Margins Show Progress — But Tariffs Still Cast A Shadow

What Experts Are Saying: Nike stock climbed after its most recently reported quarterly earnings, with shares up 15% in June on the day of the fourth-quarter earnings.

“Nike shares snapped a six-quarter losing streak in late June when their investors cheered its most recent report,” Freedom Capital Markets Chief Market Strategist Jay Woods said in a weekly newsletter.

Woods said the optimism that Nike was “returning to its past glory” may have faded with shares pulling back in recent months after the last quarterly results.

“Can the turnaround narrative continue?”

Woods said the fourth-quarter results showed progress on inventory.

“Can that inventory cleanup continue to improve, helping margins and how is the product refresh coming along?”

Woods added that management guidance and tariff commentary will likely be almost as important as the first-quarter numbers.

Analysts have been raising their price targets on Nike stock ahead of the quarterly results.

Telsey analyst Cristina Fernandez said the key areas to watch for Nike’s quarterly results are product innovation, new category revitalizations, the wholesale segment, inventory and tariffs.

The analyst maintained a Market Perform rating and raised the price target from $70 to $75.

“US retailers’ comments on Nike’s new running products, the expansion of Jordan and Nike at wholesale accounts, and consumer spending during Back-to-School have been positive,” Fernandez said, noting that the company is only providing quarterly guidance during its current turnaround strategy.

“Nike is making the right moves by cleaning up inventory, increasing newness, and strengthening relationships with wholesale partners. However, the brand still seems a few quarters away from reaching stabilization,” she said.

Here are other recent analyst ratings on Nike and their price targets:

• Morgan Stanley: Maintained Equal-Weight rating, raised price target from $64 to $70
• UBS: Maintained Neutral rating, raised price target from $63 to $71
• Barclays: Maintained Equal-Weight rating, raised price target from $64 to $65
• RBC Capital: Upgraded from Sector Perform to Outperform, raised price target from $76 to $90

Key Items to Watch: Analysts and investors will be examining Nike’s various segments and geographic regions to identify which areas demonstrate the strongest performance.

In the fourth quarter, Nike Direct revenue was down 14% year-over-year, while Nike Brand revenue was down 11% year-over-year, and wholesale revenue was down 9% year-over-year.

China sales were down 21% year-over-year in the fourth quarter, compared to an 11% decline for the North America region. Investors and analysts will be looking to see if China and other international areas posted better results.

Tariffs will be a major talking point, with Nike expecting billions of dollars in tariff impacts on their sales. Management commentary on the potential adverse effects of the tariff for the entire year, or how the company is working to mitigate the tariff risk, could be key items to watch.

Nike launched its Skims collaboration last week, a partnership with the Kim Kardashian company. Early demand for products could be among the topics discussed by the company on Tuesday.

Investors and analysts are also seeking more color on future products and collaborations, which could include how the company plans to capitalize on large sporting events such as the 2026 World Cup in North America.

NKE Price Action: Nike stock is down 0.4% to $69.04 on Monday versus a 52-week trading range of $52.28 to $89.75. Nike stock is down 6.3% year-to-date in 2025.

Read Next:

• Top CEOs Slam Trump’s Economic Policies, Think He Is Bad For Business: ‘It Is Not Realistic To Expect…’

Photo: Shutterstock

Costco Wholesale Corporation (NASDAQ:COST) could offer insight at the health of consumer spending when the retailer reports fourth-quarter financial results Thursday after market close.

Here are the earnings estimates, what analysts are saying ahead of the report, and key items to watch.

Earnings Estimates: Analysts expect Costco to report fourth-quarter revenue of $86.11 billion. That’s up from $79.7 billion in last year’s fourth quarter, according to data from Benzinga Pro.

Costco has beaten analyst estimates for revenue in two straight quarters and in five of the last 10 quarters overall.

Analysts expect Costco to report fourth-quarter earnings per share of $5.80, up from $5.15 in last year’s fourth quarter.

The company beat analyst estimates for earnings per share in the third quarter. It also beat estimates in eight of the last 10 quarters overall.

Read Also: Costco’s Supply Chain Strength Could Be Its Secret Weapon Against Tariff Pressures

What Analysts Are Saying

Costco stores in Northern New Jersey were the busiest compared to traffic checks at Amazon Fresh, Walmart, and Five Below stores.

“The Costco store in Teterboro, NJ, was extremely busy on a Tuesday at 9:45 am, with Executive members enjoying the extra hour of shopping,” Telsey analyst Joseph Feldman said.

The analyst said the Costco store was ready for fall and winter and holidays like Halloween and Christmas.

“The consumer electronics and appliance area had decent traffic, given shoppers seem to be pulling forward big-ticket purchases ahead of anticipated tariff-related price increases.”

Feldman said the grocery area was the busiest part of the store with consumers seeking value.

“We expect Costco to remain a share gainer, with its value-focused merchandising and high member loyalty.”

The analyst maintained an Outperform rating on Costco with a price target of $1,100 in the recent investor note.

Key Items to Watch

Costco’s early openings for executive members began rolling out in June and went nationwide earlier this month.

A report from Placer.ai stated that the early openings are helping alleviate congestion later in the day, reducing the time shoppers spend in-store, all while avoiding extra staffing costs.

“This redistribution helps create a more balanced flow of visitors, likely improving the shopping experience for members overall,” the report said.

Placer.ai describes the move as a “win-win” for both members and the retailer.

The early hours could be a key topic for Costco executives as it improves operations, might increase spending, and lead to more executive memberships.

Costco’s fourth-quarter results cover half of May, ahl of August and the months of June and July.

Placer.ai said overall visits to Costco were up 3.2% year-over-year in the months of April, May and June. Data from the report show that August visits increased by 5.5% year-over-year.

The report highlights that Costco has reported year-over-year visit growth in every quarter since the second quarter of 2021, driven by new store openings and an increase in same-store visits.

Store traffic and new store openings could be items for investors and analysts to watch to paint the picture of what’s ahead for Costco in the next fiscal year.

Comparable sales were up 5.7% year-over-year for Costco in the third quarter, with the three major segments of US, Canada and Other International all seeing growth. Investors and analysts will be looking for growth in regions once again heading into the next fiscal year.

Membership fees will be another area to focus on. This segment generated revenue of $1.24 billion in the third quarter. That’s up from $1.12 billion in the same quarter last year. Costco raised its membership fees in September 2024, its first increase since 2017.

Q4 will have membership fee hikes for many users, and this high-margin revenue remains vital to the company’s profitability.

Price Action: Costco stock is up 0.8% to $951.50 on Wednesday, versus a 52-week trading range of $1,078.23. Costco stock is up 3.8% year-to-date.

Read Next:

• Costco’s Extended Hours Bolster Strong Comps, Analyst Recommends Disciplined Buy

Image: Shutterstock

Homebuilder company KB Home (NYSE:KBH) aims to reverse recent trends in the sector and the company’s performance, as indicated by its recent earnings report, when third-quarter financial results are reported on Wednesday after the market close.

Earnings Estimates: Analysts expect KB Home to report third-quarter revenue of $1.59 billion, down from $1.75 billion in last year’s third quarter, according to data from Benzinga Pro.

The company beat analyst estimates for revenue in the second quarter and has beaten estimates in nine of the last 10 quarters overall.

Analysts expect KB Home to report quarterly earnings per share of $1.50, down from $2.04 in last year’s third quarter.

The company beat analyst estimates for earnings per share in the second quarter and has beaten analyst estimates in eight of the last 10 quarters overall.

Read Also: How To Earn $500 A Month From KB Home Stock Ahead Of Q3 Earnings

What Experts Are Saying: KB Home’s earnings report comes after a recent report from homebuilder Lennar Corp (NYSE:LEN), something not lost on Jay Woods, chief market strategist at Freedom Capital Markets.

“KB Home will try to avoid following in the footsteps of fellow homebuilder Lennar when they report results on Thursday afternoon,” Woods wrote in a newsletter. “Like LEN, they haven’t fared well after earnings as they have fallen after seven of the last 9 reports.”

Woods said the KB Home chart shows some bullish technicals with a “great rounded bottom base” and a longer-term golden cross signal.

“Any upbeat news and the stock is poised to run, but the news has been less than stellar as home builders continue to wait for rates to drop to see their business pick up.”

Here are recent analyst ratings on KB Home and their price targets:

• Bank of America Securities: Maintained Neutral rating, raised price target from $60 to $67
• Oppenheimer: Initiated with a Perform rating, no price target
• Wells Fargo: Maintained Underweight rating, raised price target from $50 to $60

Key Items to Watch: KB Home’s second-quarter results were mixed, with revenue and earnings per share beating analyst estimates, but year-over-year figures and guidance came in weak.

The company reported a 13% year-over-year decline in net orders for the quarter, with home deliveries down 11% year-over-year. KB Home’s backlog value was also down 27% year-over-year in the second quarter.

One of the positives was a higher average selling price of $488,700 in the second quarter. This will likely be a key metric investors and analysts look at on Wednesday. The company expects average selling prices to be $480,000 to $490,000 for the whole year.

The company stated that it aimed to reduce its build times and lower direct construction costs to enhance its business operations. These figures could be a key highlight in the third quarter.  

After lowering full-year revenue in the second quarter, all eyes may be on full-year guidance on Wednesday as investors brace for any change to the revised figures. Investors and analysts will also be looking for any early indicators as to what 2026 guidance could look like.

Other homebuilders have reported mixed results in recent earnings reports.

Lennar missed analyst estimates for both earnings per share and revenue in the third quarter. The company reported growth in orders and deliveries in the quarter, even compared to the prior year.

D.R. Horton Inc (NYSE:DHI) reported third-quarter results in July with revenue and earnings per share beating analyst estimates. The homebuilder reported a decline in revenue and home sales year-over-year. The company narrowed its full-year guidance.

KB Home reports its latest financial results after the Federal Reserve announced a rate cut and indicated that more cuts could be on the way before the end of 2025. This could be a bullish item for the homebuilder sector. It will be interesting to see what commentary the company has on this catalyst.

Berkshire Hathaway also took stakes in Lennar Class A shares and D.R. Horton stock, putting renewed investor focus on homebuilder stocks.

A strong report from KB Home could kickstart a bull case for the sector.

KBH Price Action: KB Home stock is down 0.7% to $62.00 on Tuesday versus a 52-week trading range of $48.90 to $88.86. KB Home stock is down 5.7% year-to-date.

The stock trails the year-to-date performance of both Lennar (-2.9%) and D.R. Horton (+16.8%).

Read Next:

• Is KB Home Gaining or Losing Market Support?

Photo: Shutterstock

Semiconductor giant Micron Technology (NASDAQ:MU) could report record quarterly revenue for a second straight quarter when the company reports fourth-quarter results Tuesday after market close.

Here are the earnings estimates, what experts are saying, and key items to watch.

Earnings Estimates: Analysts expect Micron to report fourth-quarter revenue of $11.22 billion, up from $7.75 billion in last year’s fourth quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in nine straight quarters.

Micron’s previous record quarterly revenue was $9.3 billion reported in the third quarter, which means this could be the second straight quarter with a record revenue total.

Analysts expect Micron to report fourth-quarter earnings per share of $2.86, up from $1.18 in last year’s fourth quarter.

The company has beaten earnings per share estimates in six straight quarters and in eight of the last 10 quarters overall.

Guidance from the company calls for fourth-quarter revenue of $10.4 billion to $11.0 billion and earnings per share in a range of $2.35 to $2.60.

Read Also: Chipmakers Ride AI Wave Towards Record Breaking Rally

What Experts Are Saying: Sentiment for the memory market and stocks like Micron has improved, Stifel analyst Brian Chin said in a recent investor note.

“The key fundamental catalyst is an increase in data storage, eSSD centric demand emanating from key hyperscaler customers,” Chin said.

The analyst maintained a Buy rating on Micron and raised the price target from $145 to $173.

Chin said product orientation, optimization and AI are all key factors in the improved outlook for Micron.

“There are favorable cross-effects in terms of increases in channel pricing and even customer OEMs being more inclined to restock inventory.”

Chin said Micron’s first-quarter revenue growth could be more from higher average selling prices and gross margins could come in higher than expected.

While capex could increase in coming quarters, Chin said revenue growth will likely outpace the higher spending.

Piper Sandler analyst Harsh Kumar is more cautious on Micron heading into the earnings report.

“We are not expecting much upside to the $11.2 billion revenue number or the EPS of $2.85 that the company guided to,” Kumar said.

Kumar maintained an Overweight rating on Micron with a $165 price target ahead of the report.

The analyst does see the first quarter results coming in ahead of current estimates.

“We think Micron has the potential to exceed the street estimate by roughly $200M-$300M. That said, we think this would be enough for the stock to sustain current levels.”

Kumar cautions investors to wait until Micron’s report before adding or chasing the stock.

Freedom Capital Markets Chief Market Strategist Jay Woods said there is optimism for Micron heading into the earnings print.

“There is much to be optimistic about heading into Tuesday’s numbers,” Woods said in a weekly newsletter. Shares rallied over 39% since Sept. 2 and are trading right at all-time highs, he added.

Micron shares typically struggle on days it reports earnings, with shares falling after four of the last five earnings reports.

Key Items to Watch: Micron’s third quarter report saw records set with revenue up 37% year-over-year. The quarter was helped by several products and segments with data center being one of the key areas of growth.

The company said HBM (high bandwidth memory) revenue was up nearly 50% quarter-over-quarter. Data center more than doubled year-over-year in the third quarter, hitting a new quarterly record.

Micron CEO Sanjay Mehrotra said the company was seeing “strong sequential growth” from consumer-oriented end markets.

Analysts and investors will be watching the data center segment, along with other areas of growth.

Guidance will be one of the key items watched by investors and analysts. A beat and strong forward guidance could provide another boost to shares.

“We are on track to deliver record revenue with solid profitability and free cash flow in fiscal 2025, while we make disciplined investments to build on our technology leadership and manufacturing excellence to satisfy growing AI-driven memory demand,” Mehrotra said after third-quarter results.

Price Action: Micron stock is up 1.5% to $165.17 on Monday versus a 52-week trading range of $61.54 to $170.45. Micron stock is up 88.9% year-to-date in 2025.

Read Next:

• Traders Hit The Buy Button On These 10 Stocks After Weak Jobs Report

Image: Shutterstock

Technology giant Meta Platforms (NASDAQ:META) will lay out new products and plans for its ambitions in artificial intelligence, smart glasses and the metaverse during the company’s Meta Connect 2025 event.

Here’s a look at how to watch the event and what to expect.

How to Watch Meta Connect 2025

Several reports on products that Meta will launch at the 2025 event have been coming ahead of the highly anticipated event.

Meta Connect 2025 takes place on Wednesday and Thursday. Meta CEO Mark Zuckerberg will give a keynote at 8 p.m. ET on Wednesday. The keynote can be watched on Meta’s Facebook page and also within Meta Horizon on VR headsets.

“Join Mark Zuckerberg as he shares the latest on AI glasses and lays out Meta’s vision for artificial intelligence and the metaverse,” Meta’s website says.

On Thursday, Meta will host its Developer Keynote at 1 p.m. ET.

Read Also: Wall Street Vs. Zuckerberg: Meta Shorts Dwarf Microsoft And Palantir Combined

What to Expect at Meta Connect 2025

According to Meta, the event will lay out the company’s future in AI and the metaverse.

Viewers of the event can expect updates on smart glasses, according to reports. Meta is expected to show off new consumer smart glasses with a display.

The glasses could be part of Meta’s partnership with EssilorLuxottica (OTC:ESLOY), the owner of Ray-Ban and Oakley.

Meta is also expected to show off a wristband with gesture controls, which could put the company into new wearable categories alongside its plans for smart glasses.

According to Meta’s website, the company is “creating the future of human connection” and will highlight this at the event.

Meta has put a larger emphasis on artificial intelligence in recent years and launched Meta Superintelligence Labs in June of this year. Investors could get more details on Meta Superintelligence Labs and its early progress in creating new growth verticals for the tech giant.

Last year’s Meta Connect saw the company highlight its more affordable Meta Quest 3S mixed reality headset, show off prototypes of the Orion smart glasses and highlight expansion into AI opportunities.

“We are getting closer to achieving the dream of Reality Labs,” Zuckerberg said at last year’s event.

The Reality Labs division of Meta has experienced sharp losses in recent years and also undergone job cuts. More highlights on how the division will grow revenue and turn profitable could be key highlights from this year’s event.

Meta Stock Reaction

Meta stock trades at $775.67 at the time of writing, down 0.4% Wednesday. Shares have traded between $479.80 and $796.25 over the last 52 weeks, with shares up 29.4% year-to-date in 2025.

On the day of last year’s Meta Connect, the stock traded between $563.72 and $576.88. The next day, shares opened at $575.73 before closing the day down at $567.84.

Meta’s stock price fell after the Meta Connect 2024 event, but has since traded higher, with shares now up 34.5% since last year’s event.

Read Next:

• Meta Beats Q2 Earnings Estimates, Issues Strong Guidance, Shares Surge To New High

Photo: Shutterstock

Homebuilding company Lennar Corporation (NYSE:LEN) could highlight falling mortgage rates and the impact of a potential rate cut when the company reports third-quarter financial results Thursday after market close.

Here are the earnings estimates, what experts are saying and key items to watch.

Earnings Estimates: Analysts expect Lennar to report third-quarter revenue of $9.00 billion, down from $9.42 billion in last year’s third quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in five straight quarters and in nine of the last 10 quarters.

Analysts expect Lennar to report third-quarter earnings per share of $2.10, down from $3.90 in last year’s third quarter.

The company missed analyst estimates for earnings per share in the second quarter, marking the first miss in earnings per share in the last 10 quarters.

What Experts Are Saying: Lennar shares are now positive in 2025, which comes after a sharp fall from their all-time highs in September 2024, something not lost on Freedom Capital Markets Chief Market Strategist Jay Woods.

“Lennar looks to build upon its recent winning ways since bottoming in April,” Woods said in a weekly newsletter. “Shares had fallen as much as 47% from their September 2024 peak but are starting to see their fortunes turn around.”

Woods highlighted the impact that mortgage rates and rate cuts from the Federal Reserve could have on Lennar stock going forward.

“Interest rates play an integral role in their success and the anticipation of cuts and a drop in mortgage rates has led to a nice rally.”

The market strategist said the Lennar stock chart shows upside targets of $180 if shares can break above the area of resistance at around the $140 to $145 range. “Shares continue to show great bullish technical signs.”

Ahead of the earnings report, Wells Fargo recently raised the price target from $110 to $135 while maintaining an Equal Weight rating.

Read Also: Fed Preview: A Rate Cut Is Baked In, Will Trump Get The ‘Big Cut’ He Wants?

Key Items to Watch: Mortgage rates and rate cuts will be key topics when the company reports quarterly results.

Mortgage rates recently dropped to 6.35%, the lowest since October 2024. The lower rates could lead to a surge in housing demand, and it will be interesting to hear what Lennar has to say on the topic.

The Federal Reserve is expected to announce a rate cut on Wednesday, which comes one day before Lennar’s report. Lower rates could also factor into housing demand and be a catalyst for the stock moving forward.

Lennar saw a 6% year-over-year increase in new orders in the second quarter; investors will expect more momentum. The company’s backlog was 15,538 homes with a dollar value of $6.5 billion at the end of the second quarter.

Another item for investors to watch, which the company is unlikely to discuss, is Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK) (NYSE: BRK-B) increasing its stake in the homebuilder.

In the second quarter, Berkshire Hathaway increased its holdings in Lennar Class B shares by 19%. The conglomerate also bought 7,048,993 shares of Lennar Class A shares. Buffett could be betting on a strong quarter and future growth for the homebuilder.

LEN Price Action: Lennar stock is up 1% to $135.12 on Wednesday, versus a 52-week trading range of $98.42 to $193.80. Lennar stock is up 7.1% year-to-date in 2025.

Read Next:

• Fed Cut Looms, Mortgage Rates Sink: Are Homebuilder ETFs The Hidden Trade?

Photo: Shutterstock

Transportation and logistics giant FedEx Corporation (NYSE:FDX) could show revenue and earnings per share growth when it reports first-quarter financial results Thursday after market close. The stock has a recent history of selling off, whether the company beats analyst estimates or not.

Here are the earnings estimates, what experts are saying, and the key items to watch.

Earnings Estimates: Analysts expect FedEx to report first-quarter revenue of $21.67 billion, up from $21.60 billion in last year’s first quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in three straight quarters, but only in four of the last 10 quarters overall.

Analysts expect FedEx to report first-quarter earnings per share of $3.62, up from $3.60 in last year’s first quarter.

The company beat analyst estimates for earnings per share in the fourth quarter and has beaten estimates in six of the last 10 quarters overall.

Guidance from the company calls for first-quarter earnings per share to be in a range of $3.40 to $4.00. Revenue guidance is to be in the range of $21.60 billion to $22.03 billion.

Read Also: Are Fewer Cardboard Box Shipments an Early Signal of a Demand Dip?

What Experts Are Saying: Analysts have been lowering their price targets on FedEx ahead of the earnings report.

Freedom Capital Markets Chief Market Strategist Jay Woods cautions investors with a reminder of past quarterly results.

“FedEx has been one of the more frustrating stocks over the last year. Shares have fallen after each of its last four earnings reports,” Woods said in a weekly newsletter.

With shares down year-to-date, Woods asks if it’s too late for FedEx to “join the recent bull party.”

“This key member of the Transportation Index continues to be a drag on its peer group but is showing some signs of a turnaround.”

Woods said the implied volatility on FedEx’s earnings day is +/- 7.1%.

Here are recent analyst ratings on FedEx and their price targets:

• Evercore ISI Group: Downgraded shares from Outperform to In-Line, lowered price target from $249 to $243
• Bernstein: Maintained Market perform rating, lowered price target from $249 to $247
• Bank of America Securities: Downgraded from Buy to Neutral, lowered price target from $245 to $240
• JPMorgan: Maintained Overweight rating, lowered price target from $290 to $285
• UBS: Maintained Buy rating, lowered price target from $297 to $293

Key Items to Watch: Among the key items that investors and analysts will be watching are volume and whether a recent partnership with Amazon.com is helping boost the company’s shipments.

Investors and analysts will also be watching to see if the expiration of a partnership with the United States Postal Service is hurting the company.

The transportation company saw increased U.S. and international export volume in the fourth quarter. The company’s report will be closely watched to see if the trends continue.

FedEx is targeting $1 billion of cost savings during fiscal 2026. Investors will be watching to see if this figure has been revised and what progress has been made in the first quarter.

FDX Price Action: FedEx stock is up 0.9% to $229.64 on Wednesday, versus a 52-week trading range of $194.30 to $308.53. FedEx stock is down 16.3% year-to-date in 2025.

Read Next:

• How To Earn $500 A Month From FedEx Stock Ahead Of Q1 Earnings

Photo: Shutterstock

The Federal Reserve is expected to cut rates on Wednesday at the Federal Open Market Committee meeting for September.

This would mark the first cut since December 2024 and would come with stock market indexes at all-time highs.

Read Also: Trump’s Billionaire Backer Turns Critic — Ken Griffin Warns President’s Fed Meddling Won’t End Well

Rate Cut Expected

President Donald Trump has called for a rate cut for multiple months and could get his wish on Wednesday, with Federal Reserve Chairman Jerome Powell expected to announce a rate cut of at least 25 basis points.

The last cut came in December, which was also a 25 basis points cut. Some experts point to a potential 50 basis points cut, which would be the biggest cut since September 2024.

The CME FedWatch Tool indicates a 96.1% probability of a 25-basis-point rate cut on Wednesday and a 3.9% chance of a 50-basis-point move. Prediction market Kalshi shows similar expectations, with a 94% chance of a 25-point cut and a 5% chance of a larger reduction. Kalshi places the odds of no rate cut at just 3%.

The Fed’s decision comes with inflation, unemployment and consumer spending all showing signs of worry.

After Wednesday’s rate cut decision, focus is likely to shift to the upcoming FOMC meetings in October and December, where additional moves — or the first cut of 2025 — could be on the table. Markets will also watch the Dot Plot for the Fed’s projections on growth, inflation, unemployment, and the path of future rate cuts.

What Experts Are Saying

Comerica Bank Chief Economist Bill Adams expects a 25-point rate cut on Wednesday. The economist said that with the expectations for the rate cut, the Dot Plot could be of particular interest.

“If Chair Powell repeats the cautious guidance from his speech at Jackson Hole in August, markets could abruptly reprice their aggressive pre-meeting rate cut expectations,” Adams said.

Louis Navellier of Navellier & Associates warns that a 25-point rate cut could see President Trump “continue to bash” Powell.

“President Trump has been saying that he expects a ‘big cut’ from the Fed on Wednesday. Specifically, Trump said, ‘I think you have a big cut’ and ‘it’s perfect for cutting,’” Navellier noted.

Navellier said the smaller rate cut could come due to retail sales reported Tuesday that showed growth of 0.6% in August, higher than a consensus estimate of a 0.3% increase.

The August retail sales showed nine of the thirteen categories up, which could indicate healthy spending, Navellier said.

Freedom Capital Markets Chief Market Strategist Jay Woods questions whether the stock market is rallying too quickly and ahead of the actual Federal Reserve decision.

“Has a rate cut been baked into the recent rally?” Woods asks in a weekly newsletter.  

With stocks hitting all-time highs, Woods said a key question is if a 25-point cut will be enough for the markets or if a 50-basis point cut is needed to continue the momentum.

“I believe that we could see excessive volatility after the press conference, and this is more likely to be a sell-the-news event. Any sell-off should set us up for a rally later in the year and pick up steam as we head into the final earnings season of 2025.”

Woods said another area to watch will be whether the Fed’s biggest concern is unemployment or inflation. The market strategist also noted that any dissent from Fed members advocating for smaller or larger cuts, or no cut at all, could be interesting.

“It will also be telling to see if Jerome Powell still has a solid consensus amongst his peers.”

Woods also highlighted the Dot Plot, which will show where Fed members want rates to be at the end of 2025.

“There’s no wiggle room here. Their take on the end of 2025 essentially means this is where it will be. So the answer to one or two more cuts should be revealed by the dots.”

Stocks Hit Record Highs

Stock indexes hit record highs last week, with several reaching new highs on Monday.

Here are the current prices of the major indexes and their 52-week ranges.

• SPDR S&P 500 ETF Trust (NYSE:SPY): $660.17 now, 52-week range of $481.81 to $661.78
• SPDR Dow Jones Industrial Average ETF (NYSE:DIA): $458.92 now, 52-week range of $366.33 to $462.31
• Invesco QQQ Trust (NASDAQ:QQQ): $591.20 now, 52-week range of $402.39 to $592.86

Of the three ETFs, the SPY and QQQ both hit new 52-week highs earlier during Tuesday’s intraday session.

Read Next:

• Bitcoin Sees 64% Bullish Sentiment—But Federal Reserve Meeting Looms Ominously

Image created using artificial intelligence via Midjourney.