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Sector Update: Financial

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-- Financial stocks were mixed in late Wednesday afternoon trading, with the NYSE Financial Index decreasing 0.2% and the State Street Financial Select Sector SPDR ETF (XLF) up 0.1%.

The Philadelphia Housing Index was falling 1.5%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was down 0.9%.

Bitcoin (BTC-USD) was declining 1.4% to $75,268.8, and the yield for 10-year US Treasuries rose 6.2 basis points to 4.42%.

In corporate news, PayPal (PYPL) Chief Executive Enrique Lores told managers this week that he is reorganizing the company to make Venmo its own standalone segment within PayPal, CNBC reported. PayPal shares rose 2.6%.

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Research Alert: Chrw Q1: Transformation Drives Margin Expansion And Share Gains

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:CHRW delivered mixed Q1 results, with adjusted EPS rising 15.4% Y/Y to $1.35, beating consensus by 10%, while revenue remained flat at $4.0B, missing estimates by $40M. Adjusted operating margin expanded 30bps to 26.6% despite revenue headwinds, with employee headcount declining 12.3% as operational transformation continues generating efficiency gains. The company achieved its 12th consecutive quarter of market share gains in NAST, with volumes flat versus a 6.2% decline in the Cass Freight Shipment Index, demonstrating competitive positioning advantages. Management's disciplined cost management approach reduced operating expenses 2.3% to $484.8M, while returning $359.8M to shareholders through buybacks and dividends. We view the challenging freight market environment as an opportunity for CHRW to outperform, as persistent weakness in freight volumes and volatile spot costs create difficulties for peers while CHRW's transformation positions it to gain share in this difficult environment.

$CHRW
Research

Research Alert: Orly: Booming Same-store Sales Growth Drives Q1 Beat And Guidance Raise

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:O'Reilly Automotive (ORLY) posted Q1 EPS of $0.72 vs. $0.62 (+16%), ahead of the $0.70 consensus. The beat was driven by much stronger-than-expected same-store sales (SSS) growth. Net sales rose 10% to $4.56B ($100M ahead of consensus), led by SSS growth of 8.1% (well ahead of the +5.5% consensus), and gross margin expanded 20 bps to 51.5% (10 bps shy of consensus). Notably, ORLY's quarterly SSS growth was the strongest since Q3 2023. ORLY increased full-year EPS guidance to $3.15-$3.25 from $3.10-$3.20, vs. the current consensus of $3.23. Notably, the guidance still assumes total revenue of $18.7B-$19.0B and SSS growth of 3%-5%, despite the company posting an 8.1% growth rate in Q1. ORLY shares are currently trading 6% higher after hours. The company's sizzling SSS growth was the big story. Also, even though the company raised full-year EPS guidance, the sales assumptions in the new guidance appear conservative, potentially setting the stage for another raise later this year.

$ORLY
Research

Research Alert: Align Technology: International Clear Aligner Volumes Support Q1 Sales, Eps Beat

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:ALGN delivered solid Q1 2026 results with revenues of $1.04B, up 6.2% Y/Y, above consensus, while adjusted EPS of $2.58 beat estimates by $0.29. Clear Aligner volumes rose 6.7% to 685.7k cases, with foreign exchange providing a $44.9M tailwind, though underlying constant currency growth was 2.6%. We view broad-based growth across customer segments positively, with orthodontist shipments up 7.4% and GP dentist volumes increasing 5.6%. The company is supported by a strong balance sheet with $1.06B in cash. Management reaffirmed full-year 2026 guidance for 3-4% revenue growth with mid-single digit Clear Aligner volume growth and non-GAAP operating margin of ~23.7%. Adjusted operating margin expanded 240 bps to 21.5%, reflecting restructuring benefits that should continue supporting profitability improvements. The company completed a $200M share repurchase and announced an additional $200M buyback starting May 2026, demonstrating shareholder-friendly capital allocation, in our view.

$ALGN