For Immediate Release
Chicago, IL – July 16, 2026 – Zacks Equity Research shares Micron MU as the Bull of the Day and General Mills, Inc GIS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on GE Vernova GEV, ReNew Energy Global RNW and Montauk Renewables MNTK.
Here is a synopsis of all five stocks:
Bull of the Day:
Zacks Rank #1 (Strong Buy) stock Micron is one of the three major global suppliers of High Bandwidth Memory (HBM). Micron's 3D-stacked DRAM (dynamic random-access memory) architecture is an integral part of the technology stack needed to run high-performance AI data centers.
Currently, the biggest bottleneck of the AI buildout is that fast NVIDIA GPUs (Graphics Processing Units) waste time waiting for slow memory solutions to feed them data. Instead of placing memory chips flat on the motherboard and connecting them to the processor with long, narrow wires, Micron's HBM technology vertically stacks them on top of each other, allowing for lightning-fast memory access.
Micron: Insatiable, Predictable Demand
Micron is capitalizing on the AI boom with its HBM solutions that are being adopted across high-performance AI infrastructure. Micron's last earnings report reflects just heavy demand, tight supply, product leadership, robust customer agreements, manufacturing expansion, and rising cash generation across cycles. Last quarter, MU delivered its 13th consecutive beat of Zacks Consensus Analyst Expectations.
Meanwhile, Wall Street expects 2026 EPS to grow nearly 800%. If MU is to meet these expectations, it would mean that the company has earned more profit in 2026 than in the past two decades combined!
DRAM Pricing & Margins
The ongoing momentum in the DRAM market is a major tailwind for Micron. DRAM revenues accounted for 76% of Micron's total sales in the third quarter and increased 67% sequentially. As a result, MU's gross margins have grown steadily over the past few quarters.
Manufacturing Expansion
Although MU is sold out for the foreseeable future, the company has recently made several acquisitions and capacity investments to enhance its capabilities. Most recently, the company completed the acquisition of the Powerchip Semiconductor Manufacturing facility in Taiwan, adding much-needed manufacturing space.
High Probability Technical Zone
MU shares have ridden the 10-week moving average for the past few years, and each dip has proven to be an asymmetric buying opportunity. Currently, shares are retreating to the intermediate-term moving average for the first time in 2026.
Bottom Line
With an architecture that directly solves AI's toughest physical hardware bottleneck, an aggressively expanding manufacturing footprint in Taiwan, and unprecedented earnings power projected through 2026, Micron remains the quintessential picks-and-shovels play of this hardware cycle.
Bear of the Day:
Zacks Rank #5 (Strong Sell) stock General Mills, Inc is a global manufacturer and marketer of branded consumer foods sold primarily through retail stores. The company also operates a commercial food service segment. GIS's primary product categories include ready-to-eat cereals, convenient meals, snacks, premium ice creams, baking mixes, and ingredients.
Its products are sold across grocery, club, e-commerce, and other formats in the United States as well as in select international markets. Additionally, General Mills entered the pet food market with its acquisition of Blue Buffalo in2018 and Tyson Foods' pet treats business in 2021.
The GLP-1 Headwind
GLP-1 weight loss drugs from Eli Lillyand Novo Nordisk.GLP-1 drugs have proven to have massive positive effects on diabetes, weight loss, and heart disease. Unfortunately for General Mills, GLP-1s quell the users' appetites, making them less likely to indulge in the packaged foods that GIS and other companies rely on revenue for. According to a recent Gallup poll, 11% of U.S. adults already take GLP-1s. Meanwhile, with cheaper GLP-1 prices on the horizon, millions more Americans are likely to get on them.
Stagnant Sales Amid Strained Consumer
General Mills relies on low-end consumers for the bulk of its sales. Management expects category growth in fiscal 2027 to be consistent with fiscal 2026 and below long-term trends, reflecting ongoing household budget pressure.
Zacks Consensus Analyst Estimates project that GIS will see negative EPS growth until 2028, at which point they expect a feebly 4.73% EPS growth.
Consumer Behavior and Trends
With lingering inflation pressures, the company's client base has been moving away from higher priced consumer branded packaged foods and instead opting for private label or store branded alternatives. As a result, GIS has been offering discounts and promotions to try to increase volumes. However, these discounts have led to shrinking profit margins.
Relative Price Weakness
GIS has exhibited consistent relative price weakness. Over the past year GIS shares are -25.7% while the S&P 500 Index is up 23.8%. In other words, the stock is an extreme laggard within a downtrend.
Bottom Line
Faced with the dual pressures of shifting consumer habits and emerging health trends, General Mills finds itself in a challenging market position.
Additional content:
Is GEV Stock a Smart Investment Ahead of Q2 Earnings?
GE Vernova is slated to release second-quarter 2026 results on July 22, before market open. The Zacks Consensus Estimate for the to-be-reported quarter's EPS and revenues is pegged at $3.17 and $10.77 billion, respectively.
The earnings estimate for the to-be-reported quarter has moved up 7 cents over the past 60 days. In the year-ago period, the company reported EPS of $1.86. The Zacks Consensus Estimate for quarterly revenues indicates an 18.2% increase from the year-ago quarter's figure.
For full-year 2026, the Zacks Consensus Estimate for GEV's revenues is pegged at $45.36 billion, implying an increase of 19.2% year over year. The consensus mark for full-year EPS is pinned at $30.65, calling for a 73.3% year-over-year expansion. Moreover, the consensus mark for 2026 EPS points to a 0.8% upward revision over the past 60 days.
GEV's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark once). The average beat is 83.6%.
Factors Likely to Shape the Upcoming Results
We expect the company's performance in the to-be-reported quarter to have been aided by the rising power, infrastructure and metal demand for AI data centers. AI-linked power demand and strong project wins should boost results. On the back of tailwinds like significant orders and backlog growth, margin expansion and cash generation, second-quarter performance is likely to have gotten a big lift.
The sharp rise in electricity demand owing to the rapid growth of data centers and the accelerating adoption of artificial intelligence is likely to drive results in the June quarter. This trend is creating wider growth opportunities for GE Vernova across its gas turbine business, grid solutions and broader power infrastructure, as governments and companies invest in more resilient and scalable energy systems to support increasing power consumption.
Favorable pricing and higher volumes are likely to have boosted EBITDA margins in the second quarter. For the second quarter of 2026, GEV expects continued year-over-year revenue growth and adjusted EBITDA margin expansion.
In the Power segment, the company expects continued strong growth in Gas equipment orders. We also anticipate 15% to 17% revenue growth driven by both higher equipment and services and an EBITDA margin of approximately 17% to 18%. The Zacks Consensus Estimate for power revenues is currently pegged at $5.5 billion, up 10.8% sequentially.
In the Electrification segment, management anticipates continued solid equipment orders with healthy margins. Second-quarter Electrification revenues are likely to be between $3.3 billion and $3.5 billion, per the company. GEV also expects strong year-over-year EBITDA margin expansion from higher volume, productivity and favorable pricing. The Zacks Consensus Estimate for power revenues is currently pegged at $3.5 billion, up 16.7% sequentially.
We also expect the company to continue adopting a shareholder-friendly stance, driven by its financial strength. Despite these positives, the offshore wind business remains a notable challenge. Project delays, higher costs and ongoing supply-chain issues continue to pressure performance. For the second quarter of 2026, management expects Wind revenues to decline at a mid-teens year-over-year rate due to lower onshore equipment deliveries, while EBITDA losses are projected between $200 million and $300 million. The ongoing economic turbulence also remains a key headwind.
Price Performance and Valuation
Shares of GE Vernova have surged roughly 63% year to date, handily outperforming the Zacks Alternate Energy – Other industry, ReNew Energy Global and Montauk Renewables.
YTD Price Comparison
GE Vernova's shares are currently trading at a premium, as suggested by the Value Score of F. The stock is trading at a premium, with a forward 12-month Price/Sales (P/S) of 5.86X compared with its industry's 5.16X.
The company is also trading at a premium relative to ReNew Energy Global and Montauk Renewables. ReNew Energy Global and Montauk Renewables' forward sales sit at 1.28X and 1.01X, respectively.
Investment Thesis
GE Vernova is benefiting from the widening gap between global demand for gas turbines and the industry's available supply, as utilities and independent power producers increasingly seek dependable power generation capacity to meet rapidly rising electricity demand.
GE Vernova stands to gain from global nuclear power energy momentum, particularly through its strong forte in producing Small Modular Reactors. GEV cemented its standing as one of the biggest long-term winners in the AI-boosted energy boom across nuclear, natural gas, electrification and grid expansion. GE Vernova is focusing on improving profitability in the wind division by tightening cost management, refining its project mix and enhancing operational efficiency.
Conclusion
GE Vernova is well-positioned for continued success. The company's growth outlook for the second quarter is highly impressive. Strong Electrification and Power revenues should aid results, despite weakness in its Wind segment.
Backed by strong fundamentals, GEV looks like a compelling buy at current levels. The stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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General Mills, Inc. (GIS): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
Montauk Renewables, Inc. (MNTK): Free Stock Analysis Report
ReNew Energy Global PLC (RNW): Free Stock Analysis Report
GE Vernova Inc. (GEV): Free Stock Analysis Report
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