FactSet reports that energy achieved 42.5% average revenue growth and 147% average earnings growth in the second quarter, while information technology reported 35.9% average revenue growth and 70.4% average earnings growth. Communications services had the second-highest earnings growth rate at 117%.

 

Ciena Corporation

AI is creating massive amounts of data – and that’s boosting demand for GPUs, servers, bandwidth and networking, as well as increasing data center traffic.

This is where Ciena Corporation (CIEN) enters the picture. The company develops networking solutions and software necessary to connect all of the aforementioned data delivery systems. Simply put, Ciena is an infrastructure company that will continue to prosper as AI continues to generate swaths of data and needs solutions to help move the data quickly and reliably from point A to point B.

So, insatiable AI demand for networking solutions continues to drive folks to Ciena’s doorstep, as evidenced by its backlog that rose to a record $7.7 billion in the second quarter. Approximately $6.4 billion of this backlog is hardware, 80% of which is anticipated to be delivered in the next 12 months.

In other words, Ciena’s top and bottom lines are set to grow rapidly in the coming months – and continue to expand well into 2027.

After achieving 40% year-over-year revenue growth and 290.5% year-over-year earnings growth in the second quarter, analysts have increased third-quarter earnings estimates. For the third quarter, earnings are now forecast to jump 156.7% year-over-year to $1.72 per share. Revenue is expected to rise 33.9% year-over-year to $1.63 billion.

I should add that for fiscal year 2026, Ciena is expected to achieve 32.7% annual revenue growth and 148.1% annual earnings growth. But as Ciena fulfills its massive order backlog, don’t be surprised if these estimates continue to be revised higher. CIEN is a Moderately Aggressive buy below $465.

SOM Technicals:

3-27-26: Closed at 399.50. Trade pressures are down. Volumes are bearish. The next target down is 362.38. Bullish above 410.00.

4-11-26: Closed at 496.02. Trade pressures are up. Volumes are bullish. The next target up is the prior high at 513.49. 467.61 is bearish.

4-18-26: Closed at 507.43. Trade pressures are up. Volumes are bullish. the next target up is 541.07. 434.81 is bearish.

4-24-26: Closed at 520.80. Trade pressures are up off the neutral zone. volumes are bullish. The next target up is 531.76. 485.16 is bearish.

5-1-26: Closed at 535.02. Trade pressures are up. Volumes are bullish. The next target up is 585.50. 475.00 is bearish.

5-8-26: Closed at 550.68. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 486.75. 579.05 would signal bullish.

5-18-26: Price at 525.89. Trade pressures are down. Volumes are bearish. The next target down is 511.33. 566 would signal higher.

5-23-26: Closed at 580.89. Trade pressures are up. Volumes are bullish. The next target up is 599.17.

5-30-26: Closed at 578.19. Trade pressures are down. Volumes are bullish. The next target up is 598.18. 542.57 would signal lower.

6-6-26: Closed at 476.01. Trade pressures are down. Volumes are bearish. The next target down is 475.90. 541.38 would signal higher.

6-13-26: Closed at 449.81. Trade pressures are down bur rising. Volumes remain bearish. The next target down is 426.31. 468.26 would signal higher.

6-19-26: Closed at 429.21. Trade pressures are down into the neutral zone. Volumes remain bearish. The next target down is 369.43. 458.25 would signal higher.

6-27-26: Closed at 477.60. Trade pressures are up. Volumes are bullish. The next target up is 517.89. A close below 458.54 would signal lower.

7-3-26: Closed at 423.20. Trade pressures are down. Volumes are bearish. The next target down is 384.15. A close above 470.37 would signal higher.

7-10-26: Opened at 462.43. Trade pressures are up. Volumes are neutral. The next target up is 551.00. A close below 433.60 would signal lower.

7-20-26: Closed 378.77. Trade pressures are down but rising. Volumes are bullish. The next target down is the 358.48 target. A close above 417.17 would signal higher.

7-25-26: Closed at 390.00. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 364.29. A close above 416.23 would signal higher.

7-31-26: Closed at 377.05. Trade pressures are up. Volumes are neutral. The next target up is 400.40. A close below 355.81 would signal lower.

8-7-26: Closed at 412.00. Trade pressures are down into the neutral zone. Volumes are bullish. The next target up is 470.87. A close below 390.35 would signal lower.

8-18-26: AM price at 403.53. Trade pressures are down. Volumes are neutral. The next target down is 377.07. A close above 425 would signal higher.

8-21-26: Closed at 395.79. Trade pressures are down. Volumes are bearish. The next target down is 358.46. A close above 417.60 would signal higher.

8-29-26: Closed at 378.44. Trade pressures are down. Volumes are bearish. The next target down is 358.46. A close above 398.41 would signal higher.

9-5-26: Closed at 321.40. Trade pressures are down. Volumes are neutral. The next target down is 305.58. A close above 340.81 would signal higher.

9-13: Closed at 348.90. Trade pressures are up. Volumes are neutral. The next target up is 381.30. A close below 328.67 would signal lower.

 

Marathon Petroleum Corporation

Refineries in the U.S. have been operating close to maximum capacity since the conflict in the Middle East escalated and energy shipments through the Strait of Hormuz were curtailed. Add in the fact that the ongoing Russia-Ukraine war has halted diesel exports from Russia, and it’s easy to see why U.S. refiners have been trying to pick up the slack.

The U.S. is the second-largest refiner in the world, only behind China. So, since the start of the conflict in the Middle East, U.S. refinery throughput has averaged about 17 million barrels per day, and American shipments of crude oil, gasoline, diesel and jet fuel ramped up to help keep up with the world’s appetite for energy.

One company that’s prospered in this environment is Marathon Petroleum Corporation (MPC), one of the biggest oil refiners in the U.S. The company has 13 refineries and the capacity to refine about three million barrels of crude oil per day.

In the second quarter, Marathon Petroleum refined about 2.9 million barrels of crude oil per day and achieved a refining margin of $36.33 per barrel. To put this into perspective, Marathon Petroleum’s refining margin in the second quarter of 2025 was only $17.58 per barrel.

No wonder Marathon Petroleum posted blowout second-quarter results!

For the second quarter, the company reported that earnings surged 325% year-over-year to $5.1 billion, or $17.73 per share, and revenue increased 53.5% year-over-year to $52.34 billion. The consensus estimate called for earnings of $13.95 per share and revenue of $41.44 billion, so MPC posted a 27% earnings surprise and a 26.3% revenue surprise.

In the wake of these stunning results, analysts have upped third-quarter earnings estimates by a whopping 127% in the past three months. Third-quarter earnings are now forecast to soar 547.5% year-over-year to $19.49 per share. MPC is a Conservative buy below $401.

SOM Technicals:

2-24-23: Closed at 193.74. Trade pressures are down into the neutral zone. Volumes are now neutral. the next target down is 188.91.

3-4-23: Closed at 196.50. Trade pressures are up. Volumes are now bullish. The next target up is 201.39.

3-11-23: Closed at 195.71. Trade pressures are down. Volumes are bullish. The next target down is the 188.91 short entry.

3-17-23: Closed at 206.88. Trade pressures are up. Volumes are bullish. The next target up is the 209.50 prior high.

3-24-23: Closed at 204.48. Trade pressures are down. Volumes are  bullish. The next target down is 195.45.

3-31-23: Closed at 210.09. Trade pressures are up. Volumes are bullish. The next target up is 211.45.

4-14-23: Closed at 214.55. Trade pressures are up but declining. Volumes are bullish. At resistance. The next target down is 203.62 with a stop at 217.67.

4-22-23: Closed at 213.00. Trade pressures are down. Volumes are bullish. The next target down is 203.62.

8-29-26: Closed at 362.12. Trade pressures are up. Volumes are bullish. The next target up is 387.09. A close below 357.73 would signal lower.

9-5-26: Closed at 390.99. Trade pressures are up but turning down. The next target up is 398.52. A close below 376.59 would signal lower.

9-13-26: Closed at 396.06. Trade pressures are up but declining. Volumes are bearish. The next target up is 409.12. A close below 386.52 would signal lower.

 

Micron Technology, Inc.

Micron Technology, Inc. (MU) will officially close out the second-quarter earnings announcement season when it reports in late September. Considering the ongoing demand for the semiconductor’s memory and storage technology, it’s going to be another blowout quarter.

You may recall that Micron Technology focuses primarily on memory technologies that collaborate with data, including DRAM, HBM (high-bandwidth memory), NAND flash and SSDs.

Micron Technology notes that expanding AI workloads – from training to inference – have increased demand for its memory and storage solutions. Micron Technology’s portfolio already encompasses data centers to intelligent edge, but the company refuses to sit on its laurels.

Recently, Micron Technology unveiled plans to invest $10 billion in a research lab in Idaho, with groundbreaking slated for 2027. Over the next 10 years, Micron Technology plans to utilize the lab to develop advanced memory technologies and compute systems, as well as support semiconductor manufacturing. All of which should add to Micron Technology’s rapidly growing top and bottom lines.

For its fourth quarter in fiscal year 2026, revenue is forecast to jump 348.8% year-over-year to $50.78 billion. Earnings are expected to surge 932.3% year-over-year to $31.28 per share. Earnings estimates have been revised 38% higher in the past three months, which bodes well for another quarterly earnings surprise.

MU is an Aggressive buy below $1,219.

SOM Technicals:

2-27-26: Closed at 411.81. Trade pressures are down. Volumes are bearish. The next target down is 379.56.

3-6-26: Closed at 369.17. Trade pressures are down but rising. Volumes are bearish. The next target down is 360.46.

3-14-26: Closed at 425.00. Trade pressures are up. Volumes are bullish. The next target up is 439.00.

3-22-26: Closed at 425.50. Trade pressures are down. Volumes are bearish. The next target down is 392.47.

7-31-26: Closed at 817.61. Trade pressures are up. Volumes are bearish. The next target down is 751.27. A close above 893.65 would signal higher. 

8-7-26: Closed at 875.50. Trade pressures are down. Volumes are bullish. The next target down is 847.06. A close above 912.00 would signal higher.

8-18-26: AM Price at 935.75. Trade pressures are down into the neutral zone. Volumes are down. The next target down is 906.85. A close above 991.73 would signal higher.

8-21-26: Closed at 965.26. Trade pressures are up. Volumes are bullish. The next target up is 988.65. A close below 906.85 would signal lower.

8-29-26: Closed at 930.80. Trade pressures are down. Volumes are bearish. the next target down is 887.11. a close above 955.72 would signal higher.

9-5-26: Closed at 1014.91. Trade pressures are up. Volumes are bullish. The next target up is 1036.74. A close below 982.72 would signal lower.

9-13-26: Closed at 975.07. Trade pressures are down. Volumees remain bullish. The next target down is 950.61. A close above 1015.32 would signal higher.

 

Phillips 66

Like Marathon Petroleum, Phillips 66 (PSX) has benefited from the uptick in U.S. refining, robust refining margins and increased shipments of refined products worldwide.

Phillips 66 currently operates 12 refineries in the U.S., with capacity to refine nearly two million barrels of crude oil per day. In the second quarter, Phillips 66 had a refining margin of $24.08 per barrel.

Now, what makes Phillips 66 different from Marathon Petroleum is that it is a more diversified energy company, with midstream (pipelines and terminals), chemicals (petrochemical and polymers), marketing (7,450 branded outlets), commercial (railcars, trucks and marine vessels) and renewable fuels (50,000 barrels of renewable fuel produced per day) businesses.

The diversification of its business has been a strong driver of growth for Phillips 66.

In the second quarter, Phillips 66 reported earnings soared 289.3% year-over-year to $3.79 billion, or $9.41 per share. Analysts expected only $7.50 per share in earnings, so Phillips 66 posted a 25.5% earnings surprise.

Looking ahead to the third quarter, analysts anticipate equally strong results: Earnings are forecast to jump 267% year-over-year to $9.25 per share, and revenue is expected to grow 20.6% year-over-year to $42.19 billion.

Earnings estimates have also been revised 56.3% higher in the past three months, so Phillips 66 is likely gearing up for its fifth-straight quarterly earnings surprise. The company posted earnings surprises of 16.8%, 14.7%, 225.7% and 25.5% in the past four quarters, respectively. PSX is a Conservative buy below $264.

SOM Technicals:

8-29-26: Closed at 244.01. Trade pressures are down into the nmeutral zone but rising. Volumes are neutral. The next taeget up is 249.97.

9-5-26: Closed at 255.09. Trade pressures are up but turning over. Volumes are bullish. The next target up is 260.57. A close below 247.08 would signal lower.

9-13-26: Closed at 259.96. Trade pressures are up but turning down. Volumes are bearish. The next target up is 265.43. A close below 255.54 would signal lower.

 

SanDisk Corporation

As we discussed earlier, SanDisk Corporation (SNDK) was a spinoff from Western Digital in early 2025, and the company has made a name for itself in the NAND/flash memory space.

If you recall from the August Monthly Issue, NAND flash technology is vital to solid-state drives (SSDs) – which are known for their speed and durability. Enterprise SSDs provide the ultra-fast storage that data centers demand since data needs to be written, saved and accessed quickly.

So, enterprise hyperscalers, data centers, cloud service providers and corporate technology companies are all SanDisk customers – and they’ve all added to SanDisk’s impressive growth story.

In its fiscal year 2026, SanDisk achieved 175% annual revenue growth and 437% annual data center revenue growth. Full-year 2026 earnings also surged a whopping 2,397% year-over-year. I should add that SanDisk also reported 372% year-over-year revenue growth and 14,571% year-over-year earnings growth in the fourth quarter.

Following these stunning quarterly and yearly results, SanDisk provided a solid outlook for the start of its fiscal year 2027. First-quarter revenue is forecast to increase between 345.9% and 367.5% year-over-year, and earnings per share are expected to soar between 3,506.6% and 3,670.5% year-over-year.

The analyst community has also revised first-quarter earnings estimates higher over the past three months. As you know, positive analyst revisions typically precede future earnings surprises. SNDK is an Aggressive buy below $2,238.

SOM Technicals:

8-29-26: Closed at 1483.42. Trade pressures are down. Volume are bearish. The next target down is 1416.99. A close above 1528.05 would signal higher.

9-5-26: Closed at 1734.01. Trade pressures are up. Volumes are bullish. The next target up is 1831.46. A close below 1548.96 would signal lower.

9-13-26: Closed at 1631.99. Trade pressures are down. Volumes are neutral. The next target down is 1553.12. A close above 1723.02 would signal higher.