A Message From Behind the Markets

Fellow Investor,

The biggest energy deadline in American history...

Just aimed its full firepower at ONE company.

See, on July 4th, the One Big Beautiful Bill Act killed the federal tax credits that powered alternative energy for years.

But here's what almost nobody knows:

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They left one untouched.

Not only that - they reclassified it alongside oil and nuclear...

And gave it eight years of credits.

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Everything changed that day.

Google signed a 15-year contract...

Bill Gates wrote a $100 million check.

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One company owns the entire chain.

Time is running out to be an "early investor."

I recommend placing your trade at tomorrow's market open.

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"The Buck Stops Here,"

Dylan Jovine, CEO and Founder
Behind the Markets

Jabil’s Double-Beat and Raise Is a Signal That This Rally Will Continue

Reported by Thomas Hughes. Published: 10/1/2026.

Whether the market responded tepidly or not, Jabil’s (NYSE: JBL) recent double-beat earnings report was a buy signal. It reinforced the thesis that has driven shares thus far while strengthening the company’s forward outlook.

AI is driving a surge in demand across the company’s product lines, pointing to a sustained upcycle and strong cash-generating capacity.

Cash-generating capacity is the core thesis, as Jabil is the manufacturing muscle behind more prominent names such as Apple (NASDAQ: AAPL), Cisco Systems (NASDAQ: CSCO), and Johnson & Johnson (NYSE: JNJ), converting demand for their products into reality.

Jabil’s dividend is merely a token, yielding less than 0.25% and intended mainly to keep dividend-focused funds and institutions in the mix. The firm aggressively repurchases shares and can continue doing so next year.

Highlights from its last fiscal year include approximately $1 billion in repurchases, up year over year and sufficient to reduce the share count by 3.6%, as well as a free cash flow payout ratio of about 69%.

Looking ahead, management forecasts free cash flow growth in the coming year, signaling the capacity for accelerated buybacks and greater shareholder returns. That outlook may provide an incentive to buy shares at current levels.

Jabil Boosted by AI, Shows Strength in All Categories

Jabil posted a solid quarter, with revenue accelerating sequentially and year over year (YOY) to nearly 29%, its fastest growth rate in more than five years. Revenue growth also outpaced consensus by a wide margin, approximately 900 basis points (bps), driven by 56% growth in Intelligent Infrastructure. Intelligent Infrastructure did the heavy lifting, but it was not the only segment to show strength: Regulated Industries rose 9%, while Connected Living/Digital Commerce was flat. CEO Mike Dastoor also highlighted several end markets unrelated to data centers and AI infrastructure, including automotive, healthcare, energy, defense, aerospace, and warehouse automation.

Margin news was another bright spot. The company faced cost pressures and gross margin headwinds, but they were less severe than expected and were offset by operational improvements. Selling, general, and administrative expenses increased at a much slower pace than revenue, showing that Jabil is becoming more efficient as it grows. This helped earnings rise faster than revenue. Adjusted earnings per share rose nearly 34% YOY to $4.40, outpacing top-line growth by about 500 bps, with these strengths expected to carry into the coming year.

Guidance is a key reason the stock’s uptrend is likely to continue. Jabil’s guidance for the next quarter and year is strong across the board, with revenue and earnings expected to come in well above MarketBeat’s reported consensus. The likely outcome is that JBL continues building momentum, operating at the high end of its expected range, if not exceeding it, and lifting its year-end outlook along the way.

Analysts’ Caution Triggers Buying Opportunity in Jabil Shares

Analysts were generally bullish following Jabil’s release, highlighting its revenue strength and earnings quality. However, they maintained a cautious stance, focusing on back-end margin expansion and the upfront cost of its capacity buildout. No analysts revised a price target or altered their sentiment immediately following the report, leaving the overall trend unchanged.

The trend includes steady coverage, a Buy consensus with a 90% Buy-side bias, and a forecast for nearly 50% upside relative to Q3 support levels and a fresh all-time high. More importantly, JBL trades well below the lowest analyst price target, signaling a deep-value opportunity and potential for explosive upside as stronger catalysts emerge.

Institutions are likewise bullish on Jabil’s stock, citing its cash flow, capital returns, and underlying demand for its clients’ products. They own more than 90% of the shares, have bought aggressively over the trailing 12 months, and ramped up activity in Q3, reaching a record high.

JBL’s price action reflects a bullish market posture. The stock is up more than 35% YOY and more than 100% over the past two years, while the 2026 pullback offers value relative to recent peaks. A deeper pullback is possible, but strong support is evident as September comes to a close, limiting the risk. The likely scenario is that JBL remains near this level until more news becomes available, likely in upcoming earnings reports.

The market may not be getting JBL’s report wrong so much as the price action reflects the split between short-term traders and long-term investors. Short-term traders focus on near-term bottlenecks, AI fears, and capacity costs, failing to price in the impact on long-term cash flow. Long-term investors focused on cash flow, capital returns, and capital gains can look past upfront costs and focus on the demand curve, which is improving quarterly across numerous end markets, not just AI.

Jabil’s biggest risk now is execution. Investors need the company’s strategy to progress without hiccups, which may be difficult given the advanced nature of AI hardware and industry-wide bottlenecks.

A Message From Brownstone Research

Dear Reader,

Do you hold any of these AI stocks?

Wall Street insider Jason Bodner — the man who called Nvidia at $4.50 — says today’s AI stocks are about to hit a wall.

And a completely different group of AI firms… names Wall Street is starting to ignore… are about to take off.

This has nothing to do with SpaceX…

A new chatbot…

Autonomous robots…

Or anything you’re likely hearing about.

It has to do with a brand-new “light-speed” device turning AI as we know it into “Accelerated AI”…

Making it 100 times faster…

And 100 times more energy efficient — right here, on Earth.

Already, some of the biggest tech investors like Elon Musk, Mark Zuckerberg, Cathie Wood, and Bill Gates are moving money into it.

Just to name a few…

They’re all moving money to prepare for what’s coming.

But you won’t hear anything about it in the mainstream news…

In fact, TV pundits spent most of this past year talking about AI worries and its “existential risk” to jobs…

Or arguing whether we’re in an AI bubble and when it would pop…

That’s why most Americans won’t see it coming until it’s too late.

Don’t be one of them…

Because if you’re holding the wrong AI stocks when “Accelerated AI” goes mainstream…

You could spend the next decade just trying to claw back to even…

But if you make the one move Jason reveals in this urgent video message…

The next 12 to 24 months could hand you bigger gains than the entire AI boom of the last three years.

Click here to hear the full story and get ahead of the crowd.

But hurry, because this opportunity won’t stay hidden much longer.

We have so much to look forward to,

Jeff Brown
Founder & CEO, Brownstone Research

P.S. Jason also shares details on 10 popular AI stocks he says you must dump before this shift goes mainstream. Names sitting in millions of 401(k)s, IRAs, and brokerage accounts. Click here to see if yours made the list.

Darden Restaurants Serves Up Fresh Catalysts for a Stock Price Rally

Author: Thomas Hughes. Published: 9/26/2026.

Darden Restaurants’ (NYSE: DRI)late-September post-earnings release price pullback could be a sell-the-news, buy-the-dip event because the company’s strengths were already expected. Investors should focus on those strengths: a portfolio of well-known, market-leading brands in key categories, including niche fine dining, which is about as good as it gets. Tepid results don’t necessarily mean weak results when analysts forecast industry-leading growth and sufficient profitability to sustain financial health, capital returns, and the uptrend in stock prices.

As always, the brand, management and results influence stock-price valuation and outlook, but cash flow and capital returns drive them. In this case, capital returns include dividends and buybacks, providing significant leverage even with shares trading near record levels. Darden’s dividend annualizes to about 3.1%, and aggressive share buybacks compound that return. Trailing-12-month (TTM) activity reduced the share count by 2.7% as of Q1 fiscal year 2027 (FY2027).

The net result is that cash flow, aided by a reduced share count, enables aggressive annual increases that could continue into the coming year. As it stands, Darden’s distribution compound annual growth rate (CAGR) is a moderately high double-digit figure, well above inflation.

Darden’s Balance Sheet Supports Capital Returns

Darden Restaurants’ high yield and aggressive buybacks might be red flags, but they aren’t. While higher yields and sudden share-count reductions often lead to stalled or declining returns, Darden is well-positioned to sustain its payouts and increase them in the coming year. The worst news is that equity declined 6% in Q1 FY2027, but the share-count reduction and dividend payment offset that decline. Key details include flat cash, higher current and total assets, persistently low leverage and ample cash flow. Coverage matters, and cash flow covered Q1 FY2027 activity, including capital returns and investments in store count and technology.

Institutions and analysts reflect strong conviction in this investment thesis. The institutional group owns more than 90% of the stock and has been aggressively accumulating shares, with analysts expecting it to reach fresh peaks. MarketBeat’s data shows institutions buying on balance for 10 consecutive quarters, averaging a $2.8-to-$1 pace over the TTM period and ramping up activity into early calendar Q3 as analyst trends strengthened.

The 27 analysts MarketBeat tracks rate the stock a Moderate Buy, with an average price target of $232.09. Consensus forecasts only modest upside as of late September, but the trend is positive, pushing the stock toward the high end of its range and fresh all-time highs. With analysts having lifted targets and ratings just ahead of the report, the trend is likely to continue in calendar Q4 if operating trends remain strong.

Darden’s Q1 Results Show Steady Growth, Not Weakness

Darden’s Q1 FY2027 results and guidance update was tepid compared with analysts’ expectations, but it was no less strong for that reason. Revenue grew 5.1% to $3.2 billion, slightly below forecasts, on a 3.1% systemwide comparable-sales increase and a 2.4% increase in store count. All segments reported positive comparable sales, led by LongHorn Steakhouse’s 6.2% gain.

Margin is another area of hidden strength. The company faced margin pressure but offset it to some degree, enabling better-than-expected bottom-line results. Key details include $279 million in cash from operations and adjusted earnings per share of $2.05, which met expectations despite the slight top-line miss. Looking ahead, the company expects steadiness, which is good enough, and affirmed its guidance for 3.1% revenue growth.

Darden’s Uptrend Holds Despite Near-Term Risks

Among Darden’s risks are higher interest rates and their impact on costs and consumers. Higher rates can increase costs while reducing consumers’ discretionary dollars and, by extension, Darden’s revenue-generating capacity. Catalysts include closing Bahama Breeze locations and converting them to higher-yielding formats. This creates upfront cost pressure but also an opportunity to drive growth, comparable-store strength and cash flow.

Stock price action is mixed after the release. The market is pulling back and may deepen the correction, potentially falling to $200 or lower before finding solid support. Even so, the stock price uptrend remains intact, and institutional investors might view the pullback as a buying opportunity. The question is how soon a rebound may form, and the answer is likely to be soon. Near-term pressures aside, consumers remain resilient, and forecasters expect some strength this holiday season. Retail sales, an indicator of consumer habits, are expected to increase by nearly 5% on average, with restaurants a potential beneficiary of the increased traffic.

Investors often get Olive Garden wrong: its slower growth isn’t an issue because it remains a pillar of the company’s cash-generating power. Additionally, its size and scale enable supply-chain efficiencies, including purchasing power, that many restaurants lack. That combination of brand strength, scale and dependable cash generation helps support Darden’s broader growth and capital-return story even when quarterly results are less exciting.