Markets spent the week digesting AI euphoria, tariff news, the latest jobs report, potential peace deals, and another flood of earnings reports. Investors interpreted all the headlines as bullish, and the S&P posted its sixth-consecutive winning week.

One headline can send markets ripping higher. The next can erase it just as quickly.

That kind of environment makes diligence more important than ever.

A key part of our diligence process is analyzing cash flow expectations. Because when expectations are high, even the best earnings beats aren’t good enough. Look no further than PLTR’s drop this week for proof.

We leverage our expectations investing framework across 3,300+ stocks to help clients find those with strong profits trading at a discount to the expectations for future profit growth. This cross-section is where real opportunity lives.

Want to see how we separate the winners from the losers? See our research from the past week.

New Long Idea:

This week’s Long Idea is the global leader in its industry, possesses structural cost advantages, and generates robust free cash flow that supports high shareholder return.

Stocks That Failed the Core Earnings Test:

Just one bad stock can ruin your portfolio, and that is why good research can make or break your pocketbook. See the stocks that lost their spot in the Bloomberg New Constructs Core Earnings Index in 2Q26.

Live Podcast & Earnings Watch Party Replay:

Are “good” results good enough to meet the high expectations priced into these stocks? Get the answer to that question and more in our latest live podcast. Stocks discussed include AMD, PLTR, SHOP, SHEL, ARM, ANET, MCD, DIS, UBER, and more!

#1 Stock Picking – Again!

Our proven-superior research earned us #1 rankings ­– again – on SumZero for May 2026.

Palantir’s Beats Are “Not Good Enough”:

David Trainer recently joined BBC News to discuss why Palantir (PLTR) dropped despite beating on both the top and bottom lines in its 1Q26 earnings report.

Featured Stocks:

We featured a stock from our Dividend Growth Stocks Model Portfolio. See how this Model Portfolio delivers Attractive-or-better rated stocks with strong track records of growing dividends.

Model Portfolio Updates:

We updated our Most Attractive Stocks and Most Dangerous Stocks Model Portfolio.

We also published the 1Q26 performance for all our Model Portfolios.

Danger Zone Podcast:

David Trainer joined Chuck Jaffe to discuss why this mid cap value fund landed in the Danger Zone.

We hope you had a great week!

See a preview of upcoming research below.

Upcoming Research