For Immediate Release
Chicago, IL – August 14, 2026 – Zacks Equity Research shares Monolithic Power Systems MPWR as the Bull of the Day and Las Vegas Sands LVS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Cardinal Health CAH.
Here is a synopsis of all three stocks:
Monolithic Power Systems
Monolithic Power Systems designs, develops, and markets high-performance power solutions. The company focuses on the market for high-performance analog and mixed-signal integrated circuits (ICs).
Its products are widely used in industrial applications, telecommunications infrastructure, cloud computing, and automotive and consumer applications. The stock is a current Zacks Rank #1 (Strong Buy), with EPS expectations remaining bullish across near-term timeframes.
Monolithic Crushes Earnings
MPWR’s latest set of results came in nicely above our expectations, posting a 10% beat relative to our consensus EPS estimate alongside an 8.5% sales beat. Sales grew by an impressive 48% YoY to a record $981 million, whereas earnings were up an even stronger 83% from the year-ago period.
Importantly, the company is a beneficiary of the AI frenzy, providing power management chips that keep AI servers and data centers from overheating and crashing. The favorable trend was confirmed in its latest release, with Enterprise Data market revenue of $380.6 million in the above-mentioned period increasing 165% YoY, driven by higher sales of power management solutions for AI and server applications.
The result of its strong demand picture has led analysts to raise their sales expectations in a big way as well for both its current and next fiscal years, with the FY26 estimate up by nearly 30% just over the last year.
The stock has cooled off recently, down roughly 15% over the last three months amid broader market volatility related to the AI trade. Shares did see a strong reaction to the latest quarterly release, and a bullish earnings picture helps keep the company’s bright outlook intact.
In addition, shares recently found some support near prior resistance and the 200-day moving average following the weak action across most of June, with the recent positive earnings reaction also a favorable sign concerning it regaining its near-term momentum. Price action aside, the company’s fundamental outlook remains rock-solid given the strong demand picture stemming from the AI frenzy, with the pullback over recent months more reflective of an opportunity than a breakdown.
Bottom Line
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The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Monolithic Power Systems would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Las Vegas Sands
Las Vegas Sands is a global developer and operator of integrated resorts. Its resorts combine casino gaming with hotel rooms and suites, retail malls, dining, entertainment, and convention facilities.
The stock is a current Zacks Rank #5 (Strong Sell), with EPS revisions showing a bearish trend across near-term timeframes.
The company also resides in the Zacks – Gaming industry, which is currently ranked in the bottom 17% of all Zacks industries. Read more about the importance of the Zacks Industry Rank.
Las Vegas Sands Underperforms
LVS shares have had a tough time in 2026 so far, down nearly 30% YTD and seeing several negative post-earnings reactions. The company fell short of the Zacks Consensus EPS estimate by 24% in its latest release and reported sales 6.5% below expectations, with sales down 0.7% YoY alongside a 25% decline in earnings.
Shares did see some initial strength following the above-mentioned release, but those gains quickly evaporated.
Casino revenues, the largest contributor to the company’s revenue mix, fell modestly YoY throughout the latest period, with results impacted by unusually low hold in rolling play. In other words, players had a strong period from a luck standpoint. While luck can’t stay on the players’ side forever, the reality is that the stock has been in an extended downtrend and has seen bearish EPS revisions, and investors would be better off finding stocks exhibiting strength in a higher-ranked Zacks industry.
Bottom Line
Negative earnings estimate revisions paint a challenging picture for the company’s shares in the near term.
Las Vegas Sands is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Cardinal Health Stock Hits a Record High After Earnings: Is CAH Still a Buy?
Cardinal Health gave investors plenty to like in its fiscal fourth-quarter report this week, sending shares to a record high of $258 as Wall Street digests another earnings beat and an encouraging fiscal 2027 outlook.
The Dividend Aristocrat's quarterly sales came in below expectations, but that was overshadowed by stronger-than-anticipated profitability, double-digit projected earnings growth, and a sizable increase to its share-repurchase authorization.
With Cardinal Health also expanding several higher-growth businesses, the post-earnings setup remains compelling even after an impressive run that has lifted CAH 12% year to date and nearly 150% over the last three years.
Cardinal Health Tops Q4 EPS Expectations
Cardinal Health closed FY26 on a strong note, reporting Q4 adjusted earnings of $2.91 per share, which surged 40% from a year ago and crushed EPS expectations of $2.42 by 20%. This was aided by higher operating earnings, tariff refunds, a lower tax rate, and a reduced share count.
That said, the earnings beat wasn't entirely attributable to the tariff benefit. Excluding the approximately 31-cent-per-share impact from tariff refunds, adjusted EPS would have been about $2.60, still comfortably above expectations.
Revenue presented a more mixed picture. Cardinal’s Q4 sales increased 6% year over year to $63.67 billion, but missed consensus estimates of $65.61 billion by 3%. Still, Pharmaceutical and Specialty Solutions revenue rose 6%, benefiting from growth from existing customers and favorable generics performance. Conversely, Global Medical Products and Distribution sales declined 2%, reflecting lower distribution volumes and anticipated tariff-refund repayments to customers.
For the full fiscal year, Cardinal Health generated $254.25 billion in revenue, up 14% YoY, while adjusted EPS surged more than 36% to $11.26.
CAH's FY27 Earnings Outlook Steals the Show
Arguably the most bullish part of Cardinal Health's report was management's initial FY27 outlook.
CAH expects adjusted EPS of $12.40-$12.60, representing roughly 10-12% growth. It’s also noteworthy that the EPS guidance represents 13%-15% growth from an adjusted FY26 earnings baseline of $10.95 per share that excludes the one-time tariff-refund benefit.
More importantly, that outlook was well above Wall Street’s consensus FY27 EPS forecast of $12.18 (Current Qtr below).
The guidance also exceeds management's longer-term EPS growth framework, providing another indication that recent operational momentum isn't simply the result of temporary benefits.
Growth is expected across several parts of the business. Pharmaceutical and Specialty Solutions revenue is projected to increase 3%-5% in FY27, accompanied by 8%-11% segment profit growth. Global Medical Products and Distribution sales are forecasted to rise 2%-4%, while its collection of other businesses is expected to produce revenue growth of 11%-13%.
The latter includes businesses such as At-Home Solutions and OptiFreight Logistics, while recent acquisitions are expanding Cardinal Health's exposure to higher-growth areas of healthcare. The recently acquired Strive Medical business and announced acquisition of AdaptHealth's Diabetes Health operations are expected to produce meaningful contributions to growth.
A Massive New Buyback Adds to the Bull Case
More intriguing is that Cardinal Health's improving earnings outlook is being accompanied by aggressive capital returns.
The board authorized an additional $5 billion for share repurchases, bringing CAH's total remaining repurchase authorization to approximately $6.4 billion. Management expects to repurchase at least $1 billion of stock during FY27 after buying back roughly $1.35 billion during FY26.
That is particularly noteworthy given Cardinal Health's rising profitability. Repurchasing shares reduces the outstanding share count and can provide an additional boost to per-share earnings, complementing the underlying growth of a business.
Expanding share repurchase authorizations also demonstrates management's confidence in cash generation while leaving room for strategic investments and tuck-in acquisitions. Rather than relying on a single lever to create shareholder value, Cardinal Health is balancing organic investment, M&A, dividends, and share repurchases.
This comes as Cardinal Health has increased its dividend for 29 consecutive years, with an annual yield approaching 1%, and its 20% payout ratio suggests there is plenty of room for future dividend hikes.
Bottom Line: CAH Still Looks Like a Buy
Cardinal Health's Q4 report wasn't perfect. Revenue missed expectations, and part of the quarterly earnings upside stemmed from a one-time tariff refund. Those factors deserve consideration, particularly with CAH trading near record territory.
However, the broader picture looks considerably more attractive.
Adjusted earnings still exceeded Q4 EPS expectations after removing the tariff benefit; management's $12.40-$12.60 FY27 EPS outlook calls for 13%-15% underlying growth and came in well above consensus forecast, and several of Cardinal Health's businesses are positioned for further expansion. Add a $6.4 billion total share-repurchase authorization and at least $1 billion of planned FY27 buybacks, and there are multiple potential drivers of EPS growth.
Trading at what is still a reasonable 19X forward earnings multiple, CAH currently sports a Zacks Rank #2 (Buy), along with an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
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Cardinal Health, Inc. (CAH): Free Stock Analysis Report
Las Vegas Sands Corp. (LVS): Free Stock Analysis Report
Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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