Sector Update: Tech Stocks Gain Late Afternoon

-- Tech stocks were higher late Monday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) rising 1.7% and the State Street SPDR S&P Semiconductor ETF (XSD) adding 2.4%.

The Philadelphia Semiconductor index climbed 1.4%.

In corporate news, Oracle (ORCL) said it introduced AI-focused updates to its utilities software suite at its customer edge summit, targeting improvements in billing, grid operations, and asset management. Oracle shares jumped 12%.

The recent sell-offs in Microsoft (MSFT), Salesforce (CRM), and ServiceNow (NOW) amid broader software apathy are disconnected from the AI opportunities over the coming years, as enterprises prioritize integrating AI across tech stacks, Wedbush said in a note. Shares of Salesforce and Microsoft were up 4.7% and 3.2%, respectively

Intel (INTC) is seen with a modest upside bias to its fiscal Q1 results and full-year outlook, driven by resilient PC demand and a sharp inflection in server CPU demand, along with pricing gains of roughly 10%, UBS Securities said in a note. UBS maintained its neutral rating on the stock but raised its price target to $65 from $51. Intel shares rose 4.4%.

Research Alert: CFRA Maintains Buy Rating On Shares Of Quest Diagnostics

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our 12-month price target at $235. This is based on a forward P/E of 21.9x our 2026 EPS estimate, a premium to DGX's three-year forward average of 16.8x due to our view of strengthening sales and earnings growth, backed by higher health care utilization trends and some regulatory relief due to postponement of lab reimbursement cuts until at least 2027. We think lab testing providers remain a relatively well-positioned area within health care given lower policy risks, supportive testing demand, and attractive earnings growth potential. On a compounded annual basis from 2025-2028, we expect near 8% EPS growth, raising our 2026 EPS to $10.73 from $10.60 and 2027 EPS to $11.50 from $11.42. We also anticipate additional smaller M&A opportunities, along with healthy dividend increases (recent 7.5% boost; shares yield 1.7%) as cash flow generation remains supportive over the near term.

$DGX

Research Alert: Pega: Q1 Results Miss, But Strength In Pega Cloud Offsets

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:PEGA reported total revenue of $430M, missing consensus by $37.2M and declining 10% Y/Y, while non-GAAP EPS of $0.46 missed by $0.23 and fell 39% Y/Y. However, Pega Cloud revenue surged 36% Y/Y to $205M, now representing 47.7% of total revenue and validating the cloud transition thesis. Pega Cloud annual contract value (ACV) acceleration remains the standout metric, growing 29% Y/Y to $906.7M and accelerating from 23% growth in Q1, demonstrating continued strong demand for the company's AI workflow automation platform. Total ACV grew 12% Y/Y to $1.62B, with backlog increasing 16% Y/Y to $2.01B providing revenue visibility. We believe the robust cash flow generation of $206.5M in free cash flow and a solid balance sheet with $474M in cash provides financial flexibility for continued AI investment. Despite near-term profitability pressure, we expect the sustained Pega Cloud momentum and strong ACV growth to support the business transformation.

$PEGA

Sector Update: Tech Stocks Gain Late Afternoon

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Research Alert: CFRA Maintains Buy Rating On Shares Of Quest Diagnostics

Research Alert: Pega: Q1 Results Miss, But Strength In Pega Cloud Offsets

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