- Why Virtu Financial (VIRT) is a Top Stock for the Long-Term
May 15, 2026 · zacks.com
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Focus List.
- Is Virtu Financial Inc (VIRT) Overvalued After 3.4% Rally? GF Value Says Overvalued
May 13, 2026 · gurufocus.com
On May 13, 2026, Virtu Financial Inc (VIRT) shares rose 3.4% today, reflecting a strong performance within a volatile market. The stock has traded between a 52-
- Wall Street Puts Blockchain to Work in $13 Trillion Repo Market
May 12, 2026
(Bloomberg) -- JPMorgan Chase & Co. spent hundreds of millions of dollars over the course of more than a decade developing systems using blockchain, a novel technology that was supposed to radically upend financial markets, but has yet to become a game-changer.
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In at least one area, though, the bank and the technology are beginning to make progress: repo.
The nearly $13 trillion market isn’t the flashiest outpost on Wall Street, but it’s the vital plumbing that keeps the money flowing. Through repurchase agreements, or repos, firms exchange Treasuries for cash — typically overnight — providing the short‑term funding that underpins trading, settlement and market‑making across the financial system.
What JPMorgan and its and peers on Wall Street are finding is that blockchain — the digital technology underlying crypto — works well with repo, allowing for precise, customizable transactions that let cash and collateral move faster and more flexibly. This frees up capital for traders to use more profitably, or to hedge against risks.
“This is one of the applications where a blockchain-based solution makes sense,” said Eddie Wen, global head of digital markets at JPMorgan, among the the largest banks in repo. It’s a product used every day by clients, Wen added.
JPMorgan launched its blockchain-based financing product six years ago. Since then, it’s handled around $3 trillion worth of repo transactions on the platform.
Today, it’s typically processing hundreds of millions of dollars of client repo financing needs each day, and $5 billion between JPMorgan entities, according to the bank. While that’s a drop in the bucket for a firm whose daily activity in the traditional repo market runs into the hundreds of billions of dollars, it represents a key step in embracing the technology from the market’s leader.
Piling In
Elsewhere, banks like HSBC Holdings Plc, alongside market makers DRW Holdings and Virtu Financial Inc. and infrastructure providers like Broadridge Financial Solutions Inc., and Tradeweb Markets Inc., are part of a growing push into tokenized repo. Across blockchain-based platforms, transactions now total hundreds of billions of dollars daily. While the degree and frequency of activity varies among firms, more and more see a reason to be involved.
Story Continues
To be clear, no one expects an overnight transformation, and the amount of blockchain transactions still pales beside those of the conventional market.
Rolling out the technology on a bigger scale would require an even wider range of banks, dealers and market infrastructure providers to adopt compatible systems. Market participants are also dealing with other pressing issues, including moves toward mandated central clearing of repo, which will keep many busy adapting their existing processes for now.
But even at this relatively nascent stage, there is momentum. Firms’ blockchain efforts in repo far exceed most other similar applications in mainstream capital markets, where activity has largely been limited to one-off transactions or tests. That makes tokenized repo one of the most tangible and potentially consequential use cases of blockchain in traditional finance.
“This is real,” said Elisabeth Kirby, head of market structure at Tradeweb, which launched a blockchain-based repo platform late last year. “It is very much not a proof-of-concept, or a ‘let’s revisit this in a couple of years’” scenario, she said. “We see this as a growth area.”
Why Now?
Activity has accelerated in the past year or so, with industry participants citing multiple converging factors that all seemed to gel at the same time.
As blockchain networks moved from testing to real transactions, regulators became more amenable to the idea of moving repo onto a new system — which is important because of how involved government agencies like the Federal Reserve can become when the market is disrupted. A more digital asset-friendly environment under President Donald Trump also helped drive activity from Wall Street.
And, as more customers became aware of the benefits, the reputation of blockchain shifted: no longer a side channel used by crypto buffs, but an accessible tool to improve trading and cut costs.
“The biggest change is that this is no longer a question of whether the technology works. It’s now focused on how quickly it can scale,” said Yuval Rooz, chief executive of Digital Asset Holdings. The firm, backed by large banks including JPMorgan and Goldman Sachs Group Inc. as well as DRW, Citadel Securities and Virtu, is behind a blockchain called Canton Network, now among the most popular in traditional finance.
The latest set of repo transactions on Canton in February used tokenized gilts as collateral in cross-border trades. Its technology is also used to power Broadridge’s Distributed Ledger Repo Platform, whose clients include UBS Group AG, HSBC and Societe Generale SA.
Bloomberg LP, the parent company of Bloomberg News, recently partnered with data provider Kaiko to develop a way for its data to be used onchain for tokenized US Treasuries and repo transactions on Canton.
How It Works
Models vary, but the key difference between traditional repo and the tokenized form has to do with how the cash and securities move between parties.
In the current structure, the market opens, there are fixed windows for putting in orders, things are closed overnight and on weekends. Most activity is routed through intermediaries, which manage collateral and settlement but add operational steps and fees. There can be phone calls asking for last-minute changes. Cross-border transactions can be particularly difficult due to time zones and holiday mismatches. Excess money can be tied up for hours, and trades can get disrupted or canceled for missed deadlines, collateral shortfalls or system outages.
Blockchain-based systems ease many of those pain points. A borrower can request funding through a digital interface, and once a lender agrees, the cash and collateral are represented as tokens. After both sides approve, the transaction is recorded on a blockchain, a shared and auditable record, for as long as the terms are set. Crucially, trades can be made at any time of the day, including outside traditional business hours.
“Blockchain as a technology can sort of lessen the distributional friction of capital,” said Sonali Das Theisen, global head of fixed-income, currencies and commodities e-trading and markets strategic investments at Bank of America Corp. “It’s healthy that we’re going in this direction.”
Real Money
For repo-market heavyweights, there are financial benefits, too. That is especially true for banks like JPMorgan that are not just saving on fees and transaction time, but on the amount of capital that heavily regulated firms must hold against trades.
A recent analysis sponsored by Broadridge showed that big banks could reduce their day-to-day “liquidity buffers” by 8% to 17% by putting 15% of their repo activity onto the blockchain. A lot depends on the size, location, business mix and risk appetite of the lender, but it has the potential to free up idle cash.
The Broadridge study cites one large, unnamed European bank, which estimates it holds about €1.1 billion ($1.3 billion) to meet intraday liquidity needs. Cutting that buffer by 15% would free up roughly €175 million for other uses or to reduce external funding, the analysis found.
It’s “orders of magnitudes of capital benefits,” said Horacio Barakat, a Broadridge executive who oversees global digital innovation. “Even small benefits can add up to tens of millions of dollars of savings a year.” The platform processed an average of $368 billion in daily repo transactions during April, with monthly volumes totaling nearly $8 trillion. The daily average is a 268% increase from a year earlier.
Industry efforts are also starting to converge. Late last year, the Depository Trust & Clearing Corp. — Wall Street’s main clearing house — said it will begin tokenizing some highly liquid assets it custodies, including Treasuries, Russell 1000 equities and exchange-traded funds.
That would widen the pool of eligible collateral for tokenized repo and, in turn, make it easier for firms to plug in and transact, with assets held at their existing custodian readily usable on distributed ledgers.
Round the Clock
New funding models like these will be needed to support a shift toward round-the-clock trading in traditional assets, now in the works, executives said. Nasdaq has outlined plans for 24-hour trading, while the New York Stock Exchange is developing a tokenized platform for continuous trading.
“As markets go 24/7, you really need that ability to get cash at any time,” said DRW founder Don Wilson. “Onchain repo is a really powerful thing to be able to facilitate that.”
DRW – which was an early Digital Asset backer – has been involved in a number of tokenized transactions on the network over the past year.
As with any new technology, there are still hurdles to clear in using blockchain for repo at scale. While Canton is popular, there are other systems that aren’t connected to one another. That means firms have to be set up to transact on a variety of systems, making it time-consuming and resource-intensive, with volumes spread across platforms.
The system is also untested at scale and through various cycles. Unlike the traditional market, which has had several stressful periods since the 2008 financial crisis — notably episodes of strain in 2019 and 2020 — blockchain systems have not been tried under similar real-world conditions, especially disruptions at odd hours.
Then there’s the familiarity factor. The current system may be inefficient, but traders have gotten used to the way it works. There are rules and expectations in place for when things change or go wrong. On blockchain, there is no such flexibility.
“I lost a lot of cushions — there is no fudging,” said Sandy Kaul, head of innovation at investment giant Franklin Templeton. “It’s written into the code. I can’t call someone up and say I need five more minutes.”
Still, for Kaul and many others in the market, these are issues to be managed — not reasons to revert to the status quo. “We are at a very important inflection point. This is the opening bell.”
--With assistance from Scott Patterson and Alex Harris.
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- Beat the Market the Zacks Way: Nabors Industries, MYR Group, Alphabet in Focus
May 11, 2026
The U.S. stock market navigated a volatile week with overall strong momentum as investors balanced geopolitical risks, economic data and upbeat corporate earnings. The S&P 500 and the Nasdaq Composite hit record highs, gaining 4.70% and 2.75%, respectively, for the week, marking their sixth consecutive weekly advance, while the Dow Jones Industrial Average also followed the major indexes with a 1.36% increase. Markets swung throughout the week as tensions in the Middle East initially pushed oil prices above $106 per barrel before easing ceasefire hopes and U.S.-Iran negotiations pulled crude back below $95. However, benchmark indexes rebounded as ceasefire hopes grew and tech earnings fueled AI momentum.
Consumer sentiment dropped to 48.2 in May, the weakest since June 2022. However, economic indicators signaled resilience despite cooling consumer sentiment. The U.S. economy added 115,000 jobs in April, far above expectations of 48,000, while unemployment held steady at 4.3%. Wage growth remained moderate, with average hourly earnings rising 0.2% monthly and 3.6% annually. Overall, the economy showed steady growth, supported by hiring, spending, and corporate earnings, despite lingering geopolitical uncertainty.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
Nabors Industries and Nordic American Tankers Following Zacks Rank Upgrade
Shares of Nabors Industries Ltd. NBR have gained 25% (versus the S&P 500’s 6.4% increase) since it was upgraded to a Zacks Rank #2 (Buy) on February 26.
Another stock, Nordic American Tankers Limited NAT, which was upgraded to a Zacks Rank #2 on February 27, has returned 9.6% (versus the S&P 500’s 7% increase) since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
An equal-weight portfolio of Zacks Rank # 1 stocks outperformed the equal-weight S&P 500 index by 7.7 percentage points in the year-to-date 2026 period (through March 3, 2026); The Zacks Rank #1 stocks returned +6.57% through March 3, while the equal-weight S&P 500 index lost -1.14% of its value.
In 2025, this hypothetical equal-weight portfolio returned +17.81% vs. +10.85% for the index, while performance comparison was +22.4% vs. +13.7% in 2024. Over the preceding 10-year period (2016 through 2025), this portfolio of qual-weight Zacks Rank #1 stocks outperformed the equal-weight S&P 500 index by more than 7 percentage points (+18.55% vs. +11.65%).
Story Continues
You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Nabors Industries’ historical EPS and Sales here>>>
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Zacks Recommendation Upgrades MYR and BrightSpring Health Services
Shares of MYR Group Inc. MYRG and BrightSpring Health Services, Inc. BTSG have advanced 60% and 31.9% (versus the S&P 500’s 7.5% increase), respectively, since their Zacks Recommendation was upgraded to Outperform on March 3.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
Zacks Focus List Stocks Virtu Financial, Alphabet Shoot Up
Shares of Virtu Financial, Inc. VIRT, which belongs to the Zacks Focus List, have gained 35.3% over the past 12 weeks. The stock was added to the FocusList on July 31, 2023. Another Focus-List holding, Alphabet Inc. GOOGL, which was added to the portfolio on May 19, 2025, has returned 28.9% over the past 12 weeks. The S&P 500 has advanced 6.6% over this period.
The 50-stock Focus List portfolio returned +6.65% in 2026 (through February 28) vs. +0.68% for the S&P 500 index and +7.06% for the equal-weight version of the index.
The portfolio returned +22.1% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.
The Zacks Focus List portfolio returned +18.41% in 2024 vs. +25.04% for the S&P 500 index and +13% for the equal-weight S&P 500 index. The portfolio had returned +29.54% in 2023 vs. +26.28% for the S&P 500 index and +13.61% for the equal-weight S&P 500 index. In 2022, the portfolio returned -15.2% vs. the S&P 500 index’s -17.96%.
Through February 28, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, 10-year basis, and since 2004 have been +29.35% (vs. +17% for the S&P 500 index), +23.13% (vs. +21.81%), +14.15% (vs. +14.19%), +16.79% (vs. +15.50%) and +12.38% vs. (+10.66%), respectively.
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Zacks ECAP Stocks FactSet Research Systems and Monster Beverage Make Significant Gains
FactSet Research Systems Inc. FDS, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 15.4% over the past 12 weeks. Monster Beverage Corporation MNST has followed FactSet Research Systems with 6.8% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -2.3% in the fourth quarter of 2025 vs. the S&P 500 index’s +2.7% gain (SPY ETF). For 2025 as a whole, the portfolio returned -1.67% vs. +17.9% gain for the S&P 500 index.
For the year 2024, the portfolio returned +16.26% vs. +24.89% for the S&P 500 index (SPY ETF). In 2023, the portfolio returned +12.17% vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. the S&P 500 index’s -17.96%.
With little to no turnover and annual rebalance periodicity, ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks Starbucks and Intercontinental Exchange Outperform Peers
Starbucks Corporation SBUX, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 5.9% over the past 12 weeks. Another ECDP stock, Intercontinental Exchange, Inc. ICE, has also climbed 2.5% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
Check Starbucks' dividend history here>>>
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With an extremely low beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps to significantly mitigate risk.
The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -2.1% in 2025 Q4 vs. the S&P 500 index’s +2.7% gain and the Dividend Aristocrats ETF’s (NOBL) +1.6% return. For 2025, the portfolio returned -0.6% vs. +6.8% gain for the Dividend Aristocrat ETF.
For the full year of 2024, the portfolio returned +6.95% vs. +24.89% for the S&P 500 index and +6.72% for NOBL.
The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for NOBL. The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stock Amkor Technology Delivers Solid Returns
Amkor Technology, Inc. AMKR, from the Zacks Top 10 Stocks for 2026, has jumped 78.5% since the list was released on January 5, 2026, compared with the S&P 500 index’s 8% increase during this period.
The Top 10 portfolio retuned +10.5% in 2026 (through February 28) vs. +0.5% for the S&P 500 index and +6.3% for the equal-weight version of the index.
The Top 10 portfolio returned +22.6% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.
The Top 10 portfolio returned +62.98% in 2024, vs. +25.04% for the S&P 500 index and +13% for the equal-weight version of the index. The portfolio had returned +25.15% in 2023 vs. +26.28% for the S&P 500 index.
Through the end of February 2026, the Top 10 portfolio has produced a cumulative return of +2,761.6% since 2012 vs. +564.8% for the S&P 500 index and +435% for the equal-weight version of the index. The portfolio has produced an average annual return of +26.4% in the period 2012 through February 28, 2026, vs. +13% for the S&P 500 index and +11% for the equal-weight version of the index.
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Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
Nabors Industries Ltd. (NBR) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
FactSet Research Systems Inc. (FDS) : Free Stock Analysis Report
MYR Group, Inc. (MYRG) : Free Stock Analysis Report
Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Nordic American Tankers Limited (NAT) : Free Stock Analysis Report
Virtu Financial, Inc. (VIRT) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
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- PRAA Q1 Earnings Beat Estimates on Higher Cash Collections
May 8, 2026
PRA Group, Inc. PRAA delivered first-quarter 2026 earnings per share of 73 cents, topping the Zacks Consensus Estimate of 51 cents by 43.1%. The bottom line increased more than eightfold year over year.
Total revenues were $315 million, beating the consensus mark of $298 million by 5.4% and rising 16.7% year over year.
Results reflected stronger cash generation across geographies, aided by continued momentum in the U.S. legal collections channel and solid performance in Europe. Strong portfolio income also contributed to the upside, partly offset by an elevated expense level.
PRAA’s net income of $31.8 million increased nearly fourfold year over year. Other revenues came in at $1.1 million, which soared 44.5% year over year.
PRA Group, Inc. Price, Consensus and EPS SurprisePRA Group, Inc. Price, Consensus and EPS Surprise
PRA Group, Inc. price-consensus-eps-surprise-chart | PRA Group, Inc. Quote
PRAA’s Collections Strength Drove Top-Line Upside
PRAA’s cash collections increased to $551.9 million, up 11% from the prior-year quarter, supported by higher collections in both the United States and Europe. Management highlighted that investments in the U.S. legal collections channel continued to generate meaningful collections growth. The metric came higher than the Zacks Consensus Estimate of $537 million.
The cash efficiency ratio was 61.8%.
By region, U.S. Core cash collections totaled $268.4 million, while Europe Core collections were $192 million. The company also generated $50.8 million of collections from other markets, reflecting its diversified footprint.
PRA Group’s Portfolio Revenues Rose on Income Growth
PRA Group’s portfolio income increased 11.9% year over year to $269.6 million, which management attributed to strong recent purchases at improved returns. Changes in expected recoveries contributed meaningfully as well, totaling $43.9 million in the quarter.
Total portfolio revenues rose 16.6% to $313.5 million compared with $268.9 million a year ago.
PRAA’s Cost Base Rose, Led by Legal Collection Spend
PRAA’s operating expenses increased $16.2 million year over year to $211.3 million. The largest driver was a $15.1 million rise in legal collection costs, which management tied to investments intended to support future cash collections growth.
Offsetting some pressure, compensation and benefits declined $2.6 million, reflecting actions to right-size agent headcount, lean more on external collections resources and reduce corporate roles. Communication expense also decreased $1.5 million as the company used more cost-efficient collection strategies.
PRA Group’s Buying Stayed Disciplined as ERC Expanded
PRA Group purchased $220.9 million of nonperforming loan portfolios in the quarter, with purchases spanning the US, Europe and other markets. Management emphasized an approach focused on higher net returns while balancing investments and leverage.
Story Continues
Estimated remaining collections were $8.5 billion at quarter-end, up 9.5% year over year, underscoring the scale of future projected cash collections embedded in the portfolio. The company also disclosed forward flow commitments of $321.8 million over the next 12 months, led by Europe and the US.
PRAA’s Financial Update (As of March 31, 2026)
PRA Group exited the first quarter with cash and cash equivalents of $124.8 million, which rose 19.5% from the figure at 2025-end.
Total assets of $5.2 billion increased 2% from the 2025-end level.
Borrowings were $3.8 billion, up 2.2% from the figure as of Dec. 31, 2025.
Total equity of $1.1 billion grew 2.7% from the figure at the end of 2025.
PRAA’s Capital Position Supported Deleveraging Priorities
PRAA ended the quarter with total availability under its credit facilities of $996 million, including $714.3 million tied to current ERC (and subject to covenants) plus $281.7 million of additional availability subject to borrowing base and debt covenants.
Management reiterated its intent to keep investing with discipline while targeting net leverage trending toward the mid-2x area over the next few years, supported by growing adjusted EBITDA. The company also repurchased $10 million of shares during the quarter as part of its capital allocation toolkit.
PRAA’s Zacks Rank
PRA Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Finance Sector Releases
Of the other Finance sector players that have reported first-quarter results so far, the bottom-line results of Virtu Financial, Inc. VIRT, Bread Financial Holdings, Inc. BFH and Evercore Inc. EVR beat the respective Zacks Consensus Estimate.
Virtu Financial reported first-quarter adjusted earnings per share (EPS) of $2.24, which beat the Zacks Consensus Estimate by 34.9%. The bottom line increased 72.3% year over year. Adjusted Net Trading Income rose 58.2% year over year to $786.5 million, surpassing the consensus estimate by 37.5%. Revenues from commissions, net and technology services rose 23.3% year over year to $186.6 million. Interest and dividend income of $127.5 million increased 16.9% year over year. Adjusted EBITDA increased 62.7% year over year to $520.6 million. Adjusted EBITDA margin improved year over year to 66.2% from 64.4% a year ago.
In the Market Making segment, adjusted net trading income totaled $637.1 million in the first quarter, climbing 66.8% year over year. The unit’s revenues increased 32.5% year over year to $915.7 million. The Execution Services unit recorded adjusted net trading income of $149.5 million in the quarter under review, representing an increase of 29.8% year over year. The unit’s total revenues rose 32.7% year over year to $187.1 million.
Bread Financial’s first-quarter 2026 operating income of $4.18 per share outperformed the Zacks Consensus Estimate by 39.3%. The bottom line rose 49% year over year. Revenues increased 5% from the prior-year level to $1 billion, exceeding the consensus estimate by 1.1%. Credit sales of $6.5 billion increased 7% year over year. Average loan increased 1% to $18.3 billion, and end-of-period loans rose 2% to $18.1 billion. Total interest income increased 2% to $1.2 billion.
The net interest margin improved 120 basis points to 19.3%. Total non-interest expenses decreased 1% to $472 million. The delinquency rate of 5.6% improved from 5.9% year over year. The net loss rate of 7.3% improved 83 basis points year over year. Pre-tax pre-provision earnings increased 11% year over year to $546 million. Adjusted PPNR, a non-GAAP financial measure that excludes gains on portfolio sales and the impact of debt repurchases, increased 11% year over year to $546 million.
Evercore reported first-quarter 2026 adjusted EPS of $7.53, surpassing the Zacks Consensus Estimate of $5.57. Also, the bottom line compared favorably with the prior-year quarter’s $3.49. Net income attributable to common shareholders (GAAP basis) was $301.2 million, up from $146.2 million in the year-ago quarter. In the first quarter of 2026, the company reported record net revenues (adjusted) of $1.40 billion, beating the Zacks Consensus Estimate by 14.2%. The top line increased from $699.9 million in the year-ago quarter.
The adjusted compensation ratio was 64%, down from 65.7% in the prior-year quarter. The adjusted operating margin was 25.3%, up from 16.6% in the prior-year quarter. In the Investment Banking & Equities segment, net revenues increased 102.9% year over year to $1.37 billion. Also, operating income surged from $106.7 million in the year-ago quarter to $326.9 million. Investment Management unit’s net revenues were $22.8 million, up 12.5% from the prior-year quarter. Operating income was $3.8 million, down 15% year over year. AUM was $15.1 billion as of March 31, 2026, up 10% year over year.
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Evercore Inc (EVR) : Free Stock Analysis Report
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- VIRT or CRCL: Which Is the Better Value Stock Right Now?
May 8, 2026
Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Virtu Financial (VIRT) and Circle Internet Group, Inc. (CRCL). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Virtu Financial is sporting a Zacks Rank of #1 (Strong Buy), while Circle Internet Group, Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VIRT is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
VIRT currently has a forward P/E ratio of 7.83, while CRCL has a forward P/E of 134.08. We also note that VIRT has a PEG ratio of 1.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CRCL currently has a PEG ratio of 5.59.
Another notable valuation metric for VIRT is its P/B ratio of 3.49. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CRCL has a P/B of 8.24.
These metrics, and several others, help VIRT earn a Value grade of B, while CRCL has been given a Value grade of F.
VIRT has seen stronger estimate revision activity and sports more attractive valuation metrics than CRCL, so it seems like value investors will conclude that VIRT is the superior option right now.
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Story Continues
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- Coinbase Q1 Earnings Miss Expectations, Revenues Decline Y/Y
May 8, 2026
Coinbase Global, Inc. COIN reported first-quarter 2026 adjusted operating loss of 17 cents per share, in contrast to the Zacks Consensus Estimate of earnings of 36 cents. COIN had reported an operating income of $1.94 per share in the prior-year quarter.
The quarterly results reflected lower consumer transaction revenues, a decrease in blockchain rewards and other revenues, lower trading volume, and escalating operating expenses.
Coinbase Global, Inc. Price, Consensus and EPS Surprise
Coinbase Global, Inc. price-consensus-eps-surprise-chart | Coinbase Global, Inc. Quote
Operational Update
Total trading volume decreased 50% year over year to $202 million in the reported quarter. The Zacks Consensus Estimate was pegged at $224 million.
Total revenues of $1.4 billion missed the Zacks Consensus Estimate by 5.6%. The top line decreased 30.5% year over year due to lower Transaction revenues, Subscription and services revenues, and other revenues.
Total transaction revenues decreased 40% year over year to $755.8 million in the quarter. The downside was due to a decrease in consumer transaction revenues, offset by an increase in institutional transaction revenues. The Zacks Consensus Estimate was pegged at $827 million.
Total subscription and services revenues decreased 14% year over year to $583.5 million in the reported quarter. The downside was due to a decrease in blockchain rewards, offset by increases in stablecoin revenues. The Zacks Consensus Estimate was pegged at $620 million.
Adjusted EBITDA was $303 million in the reported quarter, which fell 67% from the year-ago quarter. Total operating expenses increased 8% to $1.4 billion in the quarter due to higher technology and development, sales and marketing, losses on crypto assets held for operations, net, and other operating expenses.
Financial Update
Coinbase exited the first quarter with cash and cash equivalents of $10.2 billion as of March 31, 2026, down 9.6% from 2025-end.
As of March 31, 2026, long-term debt remains flat from 2025-end to $5.9 billion.
Shareholders' equity was $13.5 billion at first-quarter 2026-end, down 8.9% from 2025-end.
Net cash used in operating activities was $182,7 million in the first quarter of 2026, which decreased 78.6% year over year.
Q2 2026 Outlook
Coinbase expects subscription and services revenues to be in the range of $565-$645 million.
COIN expects technology and development and general and administrative expenses to be in the range of $820-$870 million.
Coinbase expects sales and marketing expenses to be in the $200-$300 million range. Coinbase expects transaction expenses to be in the low-to-mid teens as a percentage of net revenues.
Coinbase expects stock-based compensation to be $240 million, and restructuring expense to be in the range of $50-$60 million.
Story Continues
Zacks Rank of COIN
COIN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Financial - Miscellaneous Services Providers
Moody's Corporation MCO reported first-quarter 2026 adjusted earnings of $4.33 per share, which outpaced the Zacks Consensus Estimate of $4.25. The bottom line grew 13% from the year-ago quarter.
After considering certain non-recurring items, net income attributable to Moody's was $661 million, or $3.73 per share, up from $625 million, or $3.46 per share, in the prior-year quarter. Quarterly revenues were $2.08 billion, which surpassed the Zacks Consensus Estimate of $2.07 billion. The top line rose 8% year over year. Total expenses were $1.16 billion, up 7% year over year.
Bread Financial Holdings, Inc. BFH reported first-quarter 2026 operating income of $4.18 per share, outperforming the Zacks Consensus Estimate by 39.3%. The bottom line rose 49% year over year. Revenues increased 5% from the prior-year level to $1 billion, exceeding the consensus estimate by 1.1%.
Credit sales of $6.5 billion increased 7% year over year. Average loan increased 1% to $18.3 billion, and end-of-period loans rose 2% to $18.1 billion. Total interest income increased 2% to $1.2 billion, missing the Zacks Consensus Estimate by 0.4%, and our model estimate by 2.1%. The net interest margin improved 120 basis points to 19.3%, whereas the Zacks Consensus Estimate was pegged at 18.2%.
Virtu Financial, Inc. VIRT reported first-quarter adjusted earnings per share of $2.24, which beat the Zacks Consensus Estimate by 34.9%. The bottom line increased 72.3% year over year. Adjusted Net Trading Income rose 58.2% year over year to $786.5 million, surpassing the consensus estimate by 37.5%. Revenues from commissions, net and technology services rose 23.3% year over year to $186.6 million. The metric beat the Zacks Consensus Estimate and our model estimate of $163.2 million.
Interest and dividend income of $127.5 million increased 16.9% year over year but missed both the Zacks Consensus Estimate and our estimate of $128.6 million. Adjusted EBITDA increased 62.7% year over year to $520.6 million. Adjusted EBITDA margin improved year over year to 66.2% from 64.4% a year ago.
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This article originally published on Zacks Investment Research (zacks.com).
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