U.S. SMID FIRST TO MARKET

Research evidence excerpt

U.S. SMID FIRST TO MARKET

North America Equity Research

U.S. SMID First to Market 31 July 2026

Top Stories

AFL | Broadlines & Hardlines Retailing (Christopher Horvers, CFA)

WMT/HD/LOW: Estimates Moving Lower Sans HD; Setup & Expectations

Overall, we are maintaining our above the Street SSS/EPS forecasts for HD (+1.5% US), but lowering our WMT US SSS

below (3.2%) with EPS now in-line with the Street/high-end of the guidance range. We are also reducing our LOW SSS

forecast to -1.4% and 2H estimates with guidance expected to move to the lower half of the range. We like HD at current

levels given buyside expectations below our forecast, the 2H setup, and relative valuation.

U.S. Mid- and Small-Cap Banks Post 2Q26 Earnings Outlook (Anthony Elian, CFA)

With Messaging around Deposit Cost Competition Playing Out as Expected, We Remain Cautious

While many of our banks beat consensus EPS estimates, regional bank stocks largely performed in line with the broader

markets and large banks since the start of earnings season. Despite the widespread beats, we were not surprised to see that

regional banks (as measured by the KRX) trade in line through earnings with the large banks (BKX) and broader markets (SPX)

tied to (1) the outperformance that regional banks have logged YTD heading into earnings season combined with (2) “just

enough” earnings and outlooks that were sufficient to maintain the outperformance YTD rather than drive any additional

outperformance.

Mentions

Western Union (Tien-tsin Huang, CFA) (WU, UW, PT $8.00)

2Q26 Recap - Another Large Profit Miss Further Raises Cost Execution Bar; Cutting EPS Estimates

20%

Grid Dynamics (Puneet Jain) (GDYN, OW, PT $8.00)

2Q Recap: Improving Growth and Margin Trajectory Supported by Gain Traction