For Immediate Release
Chicago, IL – July 10, 2026 – Zacks Equity Research shares Albemarle ALB as the Bull of the Day and Cars.com CARS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Micron Technology, Inc. MU and Western Digital Corp. WDC.
Here is a synopsis of all four stocks.
Bull of the Day:
Albemarle is a Zack Rank #1 (Strong Buy) that is the world's premier lithium producer, transforming essential resources into the critical ingredients that power mobility, energy, connectivity, and health.
After a brutal two-year bear market in lithium, the cycle has turned positive. While Albemarle proved it with one of the biggest beats of the quarter in May, the stock has dropped aggressively over the last month. This has given investors a potential entry point for a rally in the back half of the year.
About the Company
The Charlotte based company operates three segments. Energy Storage produces lithium carbonate, lithium hydroxide, and lithium chloride for EV batteries, consumer electronics, power grids, and solar. Specialties handle bromine and highly engineered lithium applications. Ketjen delivers clean fuels technologies and refinery catalysts.
The company is valued at $15 billion and has a Forward PE of 10. The stock has Zacks Style Scores of “C” in Value and Growth, and “A” in Momentum.
A Monster Quarter
Albemarle reported Q1 EPS of $2.95, crushing the consensus estimate of $1.24 by 138%. Revenue of $1.43 billion topped the $1.33 billion estimate, driven by higher pricing and volume in Energy Storage and Specialties.
The profitability surge was even more impressive. Adjusted EBITDA hit $664 million, up from $267.1 million a year ago. That is nearly 2.5X growth in operating profit in twelve months.
The demand backdrop is roaring. Energy Storage Systems GWh production jumped 117% year over year in the quarter. EV GWh sales rose 3% as larger battery sizes offset lower unit volumes. And global lithium consumption climbed 37% year over year in February, tracking toward forecasted growth of 15% to 40% for the year.
Albemarle Corporation price-eps-surprise | Albemarle Corporation Quote
Raising the Bar
Management affirmed its FY26 outlook of $5.7 billion to $6.0 billion in revenue, $2.4 billion to $2.6 billion in adjusted EBITDA, and capex of roughly $550 million to $600 million.
The company raised its Specialties net sales outlook to $1.3 billion to $1.5 billion and lifted the segment's adjusted EBITDA outlook to $225 million to $275 million on higher pricing and volumes.
Cost discipline is delivering too, with $40 million in cost and productivity improvements year to date and the company on track for its $100 million to $150 million full year target.
Estimates Are Soaring
Analysts cannot raise their numbers fast enough.
The Zacks Consensus Estimate for 2026 has exploded from $8.28 ninety days ago to $13.15 today, a 59% surge. Next year's number has climbed from $9.69 to $13.48 over the same stretch. Even the current quarter estimate has jumped from $1.79 to $3.21.
When the estimate revisions trend is this strong and one directional, the Zacks Rank is telling you institutional money is still catching up to the story.
The Technical Take
The stock has failed all its moving average support levels, but is coming into a Fibonacci support zone where investors can start positions.
The $118-120 level is the 61.8% retracement, which can be found by drawing a Fibonacci retracement from 2025 lows to 2026 highs. The stock recently found support close to that golden ratio support level.
Pullbacks to the 61.8% retracement in strong uptrends with accelerating earnings estimates are the kind of setups swing traders dream about. And while there might be a long-term setup here, playing for a short-term relief bounce to moving average could also be lucrative. Let us look at those moving averages:
21-day: $147
50-day: $168
200-day: $150
In Summary
The world's top lithium producer delivered 138% earnings beat and has pulled back to golden ratio support, giving investors a rare chance to buy a Zacks Rank #1 (Strong Buy) name at a discount to its own momentum.
Whether you are a swing trader playing for a bounce back to the moving averages or a long-term investor positioning for the new lithium cycle, this setup offers something for everyone.
Bear of the Day:
Cars.com is a Zacks Rank #5 (Strong Sell) that operates one of the largest automotive marketplaces in the United States. The company connects car shoppers with dealers and manufacturers through its digital platform.
While management talks about AI enablement and platform evolution, the numbers tell a different story. Earnings collapsed year over year, traffic is shrinking, national advertising is under pressure, and analysts keep cutting estimates.
Even the CFO is selling stock.
About the Company
The Chicago based company runs the Cars.com marketplace along with a suite of dealer solutions including websites, appraisal technology through AccuTrade, and media services. It generates most of its revenue from dealer subscriptions and advertising.
The company is valued at just under $600 million. The Zacks Style Scores are positive, with scores of "A" in Value, Growth, and Momentum.
A Quarter That Raised Red Flags
Cars.com reported 6% Q1 EPS miss, with revenue of $180.2. Total traffic fell 6% year over year to 159.6 million. Monthly average revenue per dealer was flat at $2,473, both sequentially and year over year.
OEM and national advertising remain a headwind, down $2 million year over year in Q1 with similar pressure expected in Q2 as manufacturers shift budgets toward vehicle incentives to offset tariffs.
The company guided Q2 revenue flat to up 2% and affirmed the same range for the full year. Management identified $25 to $30 million in annualized cost savings, but the CFO immediately cautioned that investors should not model it as a clean step down since some savings will be reallocated into product initiatives.
Solutions and website customer counts declined sequentially. AccuTrade subscribers also fell, which management framed as "according to plan." And while the company touts AI discoverability, traffic from LLMs remains below 1%.
The raised buyback target, up 50% to $90 million, is the one shareholder friendly headline.
Estimates Are Falling
Analysts are heading for the exits, slowly but surely.
Over the last 60 days, estimates have been cut across the board with zero increases. The Zacks Consensus Estimate for the current year has slipped from $2.17 to $2.10 over the last 90 days. Next year's number has dropped from $2.54 to $2.38, a 6% haircut. The current quarter estimate has fallen from $0.52 to $0.49.
B. Riley cut the stock to Neutral from Buy citing balanced risk and reward, while UBS and JPMorgan both sit at Neutral with price targets in the $11 to $12 range.
Insiders Are Selling
CFO Sonia Jain sold 86,600 shares in mid-June at prices around $9.50. Insider selling is not always a red flag, but when the CFO trims her position while estimates fall and traffic shrinks, investors should take notice.
Technicals
The chart doesn’t look bad at the moment as the stock remains over the 200-day MA. When you zoom out, we see a sideway trend over the last year as the stock treats the $10 level as a magnet.
For now, CARS is seeing some 200-day MA support, with the 50-day MA at that $10 mark. If that level gives way, investors could see another test of the June low at $9.
In Summary
Cars.com is a flat growth story with falling traffic, pressured advertising, declining estimates and insider selling. Until the estimate revisions turn higher, the stock is a value trap best avoided.
Additional content:
Micron & One AI Infrastructure Stock to Buy Now for Big Upside
Artificial intelligence (AI) infrastructure stocks have faced significant pressure this month as investors questioned whether the pace of AI spending would remain strong. However, the long-term AI demand remains intact, supported by strong demand for graphics processing units, networking equipment, memory and storage.
Therefore, for long-term investors, the recent pullback could present an attractive investment opportunity. Among the standout AI infrastructure stocks are Micron Technology, Inc. and Western Digital Corp., whose shares have surged by 229.3% and 214.7%, respectively, so far this year. Let’s see in detail what makes these companies a strong buy now, and why they still have significant upside potential.
Micron’s AI Memory Boom Drives Growth and Upside Potential
Micron’s stock wobbled recently due to post-fiscal third-quarter 2026 earnings profit-taking and concerns about the sustainability of the present high memory prices. But Micron has emerged as an essential supplier of AI infrastructure and is no longer considered a cyclical memory stock. The company’s fundamentals remain intact as its recent quarterly results beat expectations, and its outlook remains strong, driven by robust AI memory demand.
Micron reported revenues of $41.46 billion in the fiscal third quarter of 2026, a 74% sequential increase, according to investors.micron.com. For the fiscal fourth quarter of 2026, the company expects revenues of $50 billion, suggesting that demand for Micron’s state-of-the-art high-bandwidth memory chips used in AI servers remains strong. Growing demand for Micron’s memory products and strong pricing power boosted its profitability, with gross margin improving to 84.6% for the fiscal third quarter from 37.7% a year earlier.
Micron’s strong cash inflows and strategic deals have further enhanced its long-term revenue visibility and reinforced its growth outlook. Consequently, the company’s expected earnings growth rate for the current year is 791%. The Zacks Consensus Estimate of $73.86 for MU’s earnings per share is up 502% year over year.
Brokers also remain hopeful about the company’s prospects. The average short-term price target for MU stock stands at $1,422.77, implying a potential upside of 51.6% from the recent closing price of $938.38. The highest price target of $2,000 indicates a possible upside of 113.1%, highlighting strong investor confidence in Micron’s long-term growth outlook.
Western Digital: Strong AI Demand Fuels More Upside
Western Digital’s revenues totaled $3.34 billion in the fiscal third quarter of 2026, up 45% year over year, according to the company’s press release. Revenues are expected to be even stronger in the fiscal fourth quarter of 2026, at $3.65 billion, plus or minus $100 million. The strong outlook suggests that AI infrastructure spending remains robust, as cloud and enterprise customers continue to invest heavily in high-capacity storage to support expanding AI workloads.
Western Digital’s non-GAAP gross margin increased to 50.5% in the fiscal third quarter from 40.1% in the year-ago period. What’s more, management expects non-GAAP gross margin to expand further to 51-52% in the fiscal fourth quarter of 2026.
This shows the company can sell more high-value enterprise HDDs amid a favorable pricing environment. Higher gross margins also provide greater financial flexibility to invest in research and development, strengthen the balance sheet, drive earnings growth and boost the share price over the long run.
The company’s earnings outlook remains equally strong, with expected earnings growth of 104.1% for the current year. The Zacks Consensus Estimate of $10.06 for WDC’s earnings per share is up 54.8% year over year.
Brokers are also optimistic about Western Digital’s growth prospects. They forecast the average short-term price target for WDC stock at $608.27, implying a 14.3% increase from the last closing price of $532.1. The highest target is $1,050, suggesting a potential upside of 97.3%, highlighting continued confidence in Western Digital’s long-term growth potential.
Both Micron and Western Digital have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
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