Equity Research Reports

Intel's valuation and price target analysis as of January 2026 explores the company's market position, strategic investments, and potential outcomes across base, bull, and bear scenarios. The analysis highlights Intel's transition from a struggling semiconductor giant to a potential foundry leader, with significant execution risks and opportunities.

This comprehensive analysis examines the AI ecosystem's complete value chain, from energy infrastructure and chip design tools to semiconductor manufacturers and model builders. With valuations reaching historical extremes in 2024-2025, we assess whether the AI theme remains investable for 2026. The report analyzes ten key players across EDA software, power generation, chip design, cloud infrastructure, and AI development, providing perspective on competitive positioning and growth sustainability. Our analysis suggests a bifurcated outlook: infrastructure winners with pricing power versus challenged hardware suppliers facing margin compression.

Roblox Corporation delivered a robust Q4 performance, with revenue reaching $1.4 billion, up 43% year-over-year, and bookings at $2.2 billion, a 63% increase from the previous year. The company's actual EPS loss was $0.45, narrower than the estimated loss of $0.4671. The strong growth was driven by a 55% year-over-year increase in bookings and a significant rise in concurrent users, with 45 million concurrents recorded in August 2025.

WEC Energy Group reported adjusted earnings of $5.27 per share for full-year 2025, beating expectations. The company's utility operations adjusted earnings were $0.63 higher in 2025 compared to 2024, driven by rate-based growth and favorable weather. The earnings per share (EPS) for 2025 were $5.27, an increase of $0.39 per share over 2024 adjusted earnings. Revenue growth was robust, driven by strong economic growth in the region, particularly from large data center projects, including Microsoft's large data center complex.

ConocoPhillips reported adjusted earnings of $1.02 per share in Q4 2025, slightly below the estimated $1.07 per share. The company's production stood at 2,320,000 barrels of oil equivalent per day, while it returned $2.1 billion to shareholders during the quarter, comprising $1 billion in buybacks and $1 billion in ordinary dividends. Revenue growth is expected to continue, with analysts estimating a 6.3% increase in revenues for the next year.

O'Reilly Auto Parts reported a robust financial performance for 2025, with total sales increasing by 6.4% to $17.8 billion, driven by a 4.7% comparable store sales growth. The company's operating profit margin stood at 19.5%, flat from the previous year, while EPS grew by 10% to $2.97. The strong performance was largely attributed to the continued successful execution of the company's new store expansion strategy and a strong professional business, with comparable store sales growth of over 10% for the second consecutive quarter.

RBC Bearings reported a robust fiscal third quarter 2026, with net sales reaching $161 million, a 17% increase over the same period last year. The company's consolidated gross margin for the quarter was 44.3%, or 45.1% on an adjusted basis, while adjusted diluted EPS came in at $3.04, a 30% improvement from $2.34 a year ago. Notably, the actual EPS was $2.13, slightly below estimates of $2.85. Revenue growth was driven by continued strong performance in the A&D segment, as well as growth from industrial businesses.

Cummins Inc. reported a robust financial performance in 2025, with revenues of $33.7 billion, down 1% from 2024, and EBITDA of $5.4 billion or 16% of sales. Excluding one-time items, EBITDA was a record $5.8 billion or 17.4% of sales, driven by higher power generation volumes, pricing, and improved operational efficiency. The company's net earnings for 2025 were $2.8 billion or $20.50 per diluted share, compared to $3.9 billion or $28.37 per diluted share in 2024. Notably, the actual EPS came out at $5.84, beating estimates of $5.1.

Xcel Energy reported ongoing earnings of $3.80 per share for 2025, marking the 21st consecutive year of meeting or exceeding initial ongoing earnings guidance. The company's financial performance was driven by higher electric and natural gas revenues due to rate case outcomes, nonfuel riders, and sales growth, partially offset by higher fuel and purchased power expenses. Revenue growth is expected to continue, with analysts estimating a 7.9% increase next year. The actual EPS for the quarter came out at $0.96, slightly below estimates of $0.962.

Shell's financial performance in 2025 was marked by adjusted earnings of $18.5 billion, with cash flow from operations reaching $43 billion and free cash flow totaling $26 billion. The company's EPS for the fourth quarter was $0.4185, slightly below analyst estimates of $0.4537. Revenues were not explicitly stated, but the company's LNG sales grew by 11% in 2025, driven by incremental volumes from various projects. The company's cash CapEx range for 2026 remains at $20 billion to $22 billion, indicating a continued focus on disciplined investing.

KKR & Co. Inc. reported a robust fourth quarter 2025, with key financial metrics including $1.08 of fee-related earnings per share, $1.42 of total operating earnings per share, and $1.12 of adjusted net income per share, slightly below estimates of $1.14. Management fees grew 24% year-over-year to $1.1 billion, driven by a record $129 billion in capital raised during the year. Total transaction and monitoring fees were $269 million, and capital markets fees came in at $225 million. Fee-related compensation was 17.5%, and other operating expenses were $205 million.

MetLife reported strong fourth-quarter 2025 adjusted earnings of $1.6 billion, or $2.49 per share, with $2.58 per share excluding notable items, a 24% increase compared to $2.08 per share a year ago. The company's adjusted earnings rose 18% to $1.7 billion, driven by higher variable investment income, strong volume growth, and favorable expense margins. The actual EPS came out at $2.58, beating analysts' estimates of $2.34.

Ralph Lauren Corporation reported a robust third quarter, with revenue growth of 10% exceeding the company's initial expectations. The adjusted gross margin expanded 140 basis points to 69.8%, driven by Average Unit Retail (AUR) growth, favorable mix shift, and lower cotton costs. AUR grew 18% in the third quarter, supported by strong full-price selling trends and reduced discounting. Adjusted operating margin expanded 200 basis points to 20.7%, and operating profit increased 21%. Earnings per share (EPS) came in at $5.79, slightly below analyst estimates of $5.8.

STERIS plc reported its third-quarter 2026 financial results, with total as-reported revenue growing 9% and constant currency organic revenue growing 8%. The growth was driven by volume and 200 basis points of price, with gross margin declining 70 basis points to 43.9% due to increased tariffs and inflation. Adjusted net income from continuing operations was $249.4 million, and earnings per diluted share from continuing operations were $2.53, a 9% increase over the prior year, in line with analyst estimates. The company's ability to pass on price increases and maintain revenue growth is a testament to its strong market position.

The Allstate Corporation reported robust financial performance for the fourth quarter of 2025, with total revenues increasing to $17.3 billion and net income applicable to common shareholders reaching $3.8 billion. The adjusted net income was $3.8 billion, or $14.31 per common share, significantly beating analysts' estimates of $9.83. The company's auto combined ratio improved by 10 points compared to the prior year, driven by strong underlying performance, lower catastrophes, and favorable prior year reserve releases. The homeowners insurance business continued to grow, with premiums earned increasing by 15% and policies in force growing steadily.

Estee Lauder Companies reported a 4% organic sales growth and EPS growth of 43% in Q2, driven by strong performance in skincare and fragrance, with 6% growth. Gross margin expanded 40 basis points, driven by strong net benefits from the PRGP and improved sales leverage. Operating margin expanded 290 basis points to 14.4%, driven by disciplined investment allocation and PRGP net benefits. EPS came in at $0.89, beating estimates of $0.835, with the actual reported EPS being $0.87 after adjusting for certain items, representing a 43% increase.

Intercontinental Exchange (ICE) reported a robust financial performance for 2025, with record adjusted earnings per share of $6.95, representing a 14% year-over-year increase. Full-year net revenues reached a record $9 billion, while adjusted operating expenses were managed effectively at $3.9 billion. In the fourth quarter, adjusted earnings per share totaled $1.71, beating estimates of $1.68, and net revenues of $2.5 billion increased 7% year over year. The company's disciplined approach to expense management and diversified business model contributed to its strong performance.

Cigna Group delivered a robust full-year 2025 adjusted revenue of $275 billion, representing an 11% increase, and adjusted earnings per share of $29.84, a 9% increase. The company's adjusted EPS came out at $8.08, beating estimates of $7.88. The strong performance was driven by growth across its businesses, including EverNorth and Cigna Healthcare. The company's adjusted revenues are expected to grow by 6.1% next year, according to analysts' estimates.

Thomson Reuters delivered a robust Q4 with organic revenue growth of 7%, driven by a 9% increase in the Big Three segments, which include Legal Professionals, Corporates, and Tax & Accounting. The company's adjusted EBITDA margin expanded by 110 basis points to 38.7%, resulting in an adjusted EPS of $1.07, up from $1.01 in the prior year period. The strong financial performance was accompanied by a significant increase in free cash flow, which reached $1.95 billion, slightly ahead of the company's outlook.

Hershey's reported a strong financial performance in 2025, with actual EPS coming in at $1.71, beating analyst estimates of $1.4. The company's revenue growth was robust, driven by its pricing strategy and consumer demand. The gross margin framework was impacted by cocoa inflation, but the company's hedging strategy helped mitigate the effects. With a P/E Ratio of 37.59, the market is pricing in a certain level of growth, which Hershey's is expected to deliver in 2026 with a forecasted net sales growth of 4% to 5%.

Aflac Incorporated reported adjusted earnings per diluted share of $1.57 for the fourth quarter, a 0.6% increase year-over-year, and $7.49 for the full year. The company's net earnings per diluted share were $2.64 for the quarter and $6.82 for the year. The Japan segment saw a 1.9% decline in net earned premiums in yen terms, while the underlying earned premiums declined 1.2%. The total benefit ratio in Japan came in at 65% for the quarter, down 150 basis points year-over-year. In the U.S., net earned premiums were up 4%, with a total benefit ratio of 48.6%. Aflac's adjusted leverage was 21.4% for the quarter, within its target range of 20% to 25%.

The company's Q4 revenue came in at $12.5 billion, flat year-over-year, with the growth portfolio continuing its positive momentum, increasing 15% to $7.4 billion. Key brands, including Reblozyl, Breyanzi, Camzyos, and the IO portfolio, achieved significant growth. The company's non-GAAP EPS for the full year was $6.05, beating estimates. For 2026, the company expects non-GAAP EPS in the range of $6.05 to $6.35, with a gross margin between 69% to 70%. Actual EPS for Q4 came out at $1.26, relative to estimates at $1.23.