Dear Reader,
I’ll be brief as the opportunity ahead is urgent.
There’s a semiconductor company that supplies both Apple and SpaceX … that’s absolutely ON FIRE here in 2026.
The Wall Street Journal just reported in June that this company DOUBLED its data center revenue forecast to $1 BILLION (up from its prior forecast of $500M).
“Surging demand for the building blocks of AI has led to a memory chip shortage and fueled a global rally in semiconductor stocks,” WSJ reported.
Morningstar raised its prior forecasts on this company: “We think the company is in a nice position in the artificial intelligence infrastructure buildout
Michael Robinson
Lead Technology Strategist, Weiss Ratings
P.S. This company also said its chip shipments to SpaceX could DOUBLE by 2027.
Investors Are Buying Into Sweetgreen Again—Should They?
Submitted by Jennifer Ryan Woods. Publication Date: 6/22/2026.
Key Points
- Sweetgreen shares have surged more than 60% over the past three months despite another disappointing earnings report, suggesting investors may be looking beyond recent results and focusing on signs of a turnaround.
- While Wall Street remains cautious, improving traffic trends and early signs of progress in the company's turnaround plan seem to have fueled optimism around the stock.
- Analyst upgrades, declining short interest, and insider buying all suggest confidence in Sweetgreen may be starting to improve.
- Special Report: Forget SpaceX. Buy the company Musk can't replace.
Shares of Sweetgreen Inc. (NYSE: SG) have surged 60% over the past three months, rebounding from a steep selloff that began in late 2024 as concerns about slowing consumer demand mounted. The rally has some investors questioning whether the company's efforts to revive the business are finally gaining traction or whether the stock is simply bouncing from deeply oversold levels.
Sweetgreen's core business remains unprofitable, and the company has missed Wall Street expectations more often than not since going public, including in the most recent quarter, reported on May 8.
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Click here to claim your free copy before the offer endsStill, encouraging comments about its turnaround efforts appear to have sparked fresh optimism.
Sweetgreen Shares Have Surged Since Hitting March Low
The fast-casual chain, known for its salads and other healthy menu items, went public in late 2021, and its shares initially soared. However, those gains were short-lived, and the stock spent much of the following years under pressure as the company struggled to turn a profit.
In 2024, things began to improve. The stock rose from around $10 in January to above $44 by November. But as concerns about slowing consumer demand emerged, those gains quickly unraveled. By March 2026, the stock had plunged to an all-time low of $4.49. Since then, shares have rebounded sharply, surging nearly 100%.
The catalyst doesn't appear to be the company's most recent earnings report. Sweetgreen posted a first-quarter loss of 27 cents per share, wider than the 21-cent-per-share loss reported a year earlier and Wall Street's estimate for a 23-cent loss. Revenue of roughly $162 million fell nearly 3% year over year and missed expectations by about $2 million. The results marked the company's fourth consecutive earnings and revenue miss and its third straight quarter of declining revenue.
Turnaround Plan Is Showing Signs of Traction
Despite the disappointing earnings report, the company's comments on its Sweetgrowth Transformation Plan, launched in November 2025 to help turn the business around, appeared to spark optimism among investors.
During the earnings call, co-founder and Chief Executive Jonathan Neman said, "We are beginning to see signs that the actions we are putting in place are gaining traction. We are seeing improvement in execution across our restaurants, greater consistency in the guest experience, and stronger alignment across our teams."
He added, "We saw improvement as the quarter progressed with a further step up in April."
Neman also expressed enthusiasm about the recent addition of wraps to the menu, which he described as Sweetgreen's "most significant menu expansion in several years." The company expects wraps to help drive traffic while making the brand more accessible because of their lower price point.
Sentiment Has Improved, But Wall Street Remains Cautious
Investors appeared encouraged by the company's comments about improving trends. In the weeks following the report, five analysts raised their price targets on the stock, while two upgraded their ratings.
Even with the recent upgrades, Wall Street remains somewhat cautious. The consensus rating on Sweetgreen is Hold, based on 12 Hold ratings, four Buys, and three Sells. Most analysts aren't expecting meaningful upside over the next year. The average 12-month price target of just above $8 is roughly 5% below the current share price. Price targets range from a low of $4.50 to a high of $15.
There are other indicators that sentiment may be improving as well. The number of shares sold short has fallen from roughly 25 million, or nearly 27% of float, at the end of March to less than 20 million, or roughly 20% of float, as of the most recent reporting period at the end of May. While the stock remains heavily shorted, some bearish investors appear to be backing away from the name.
Insiders also appear to be expressing confidence in the company. Over the past three months, Sweetgreen insiders purchased roughly $3.4 million worth of company stock. No insider sales were reported.
Despite Recent Rally, Stock Remains Well Below Highs
Even after the recent rally, Sweetgreen shares are still trading around $9, well below their July 52-week high of $16.70 and far below the more than $44 level reached in November 2024.
The stock's steep decline has left Sweetgreen trading at a discount to several peers in the fast-casual restaurant sector, which could help explain the renewed interest in the shares.
On a price-to-sales basis, Sweetgreen stock trades at less than 1.6X sales, compared with roughly 8.3X for CAVA Group Inc. (NYSE: CAVA), 3.4X for Chipotle Mexican Grill, Inc. (NYSE: CMG), and 6.1X for Wingstop Inc. (NASDAQ: WING). Shake Shack Inc. (NYSE: SHAK), which plummeted after reporting disappointing Q1 results, is the closest comparison, trading at 1.7X sales.
Sweetgreen's rebound likely began as investors saw value in a stock that had been heavily sold off. More recently, however, signs of progress in the company's turnaround efforts appear to have provided additional support for the rally.
While the company's financial results still leave plenty of room for improvement, investors seem increasingly focused on what comes next. The second-quarter earnings report in August should provide a clearer indication of whether the recent improvement in traffic trends continued and whether Sweetgreen is beginning to translate those gains into stronger financial performance.
MDA Space Targets US Defense Market With $620M Acquisition
Submitted by Jeffrey Neal Johnson. Publication Date: 6/25/2026.
Key Points
- MDA Space's $620 million acquisition of Blue Canyon Technologies unlocks access to a $3.5 billion U.S. defense pipeline previously closed to foreign contractors.
- A new C$688 million Canadian Space Agency contract replenishes nearly 19% of MDA Space's contracted backlog, restoring multi-year revenue visibility through the decade.
- MDA Space trades at a 79% to 94% valuation discount to unprofitable space peers on 2027 EV/EBITDA multiples, despite consistent profitability since its 2021 IPO.
- Special Report: Forget SpaceX. Buy the company Musk can't replace.
Space infrastructure has quickly evolved from a playground for speculative venture capital into a capital-intensive, cash-flow-driven defense business. For investors following this sector, the challenge is finding companies that combine high-growth addressable markets with sustainable profitability. MDA Space (NYSE: MDA) captures that dynamic well. Following a wave of aggressive expansion, including a C$688 million (approx. $490 million) satellite contract with the Canadian Space Agency and a $620 million strategic acquisition of Blue Canyon Technologies from RTX Corp (NYSE: RTX), MDA Space is positioning itself as a cross-border defense leader.
Mispriced Orbits: Capitalizing on a Sector Blind Spot
Despite a strong sovereign moat and consistent profitability since its 2021 initial public offering, MDA Space trades at a striking 79% to 94% valuation discount on 2027 EV/EBITDA multiples compared with similar but largely unprofitable pure-play space peers like Intuitive Machines (NASDAQ: LUNR) and Redwire (NYSE: RDW).
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See the 5 stocks to avoidThe broader market appears to be mispricing the transformation MDA Space is pursuing. Its recent pullback could create an opportunity to buy shares in a cash-generating business before Wall Street fully prices in its emergence as a prime United States defense contractor. Understanding the mechanics of this valuation arbitrage is important for allocating capital in the aerospace sector.
Refueling the Order Book for Long-Term Orbit
Understanding the current valuation requires a close look at the first quarter of 2026. MDA Space delivered exceptional top-line results, reporting C$464.1 million (approx. $330 million) in revenue, a 32.2% year-over-year increase. Adjusted earnings per share (EPS) came in at 38 Canadian cents (approx. 27 cents), easily topping analyst consensus of 23 Canadian cents (approx. 16 cents). Adjusted EBITDA reached C$90.6 million (approx. $64 million), maintaining a healthy 19.5% margin. Wall Street often looks for a catch behind a strong earnings beat, and in this case, the rapid pace of backlog conversion into recognized revenue outpaced new order bookings. The order book fell from C$4.84 billion (approx. $3.45 billion) in the first quarter of 2025 to C$3.69 billion (approx. $2.63 billion) by the end of the first quarter of 2026.
For a defense contractor, a shrinking backlog can signal a potential revenue cliff ahead. That concern kept some institutional buyers on the sidelines despite the strong operating results. The recently announced C$688 million (approx. $490 million) contract with the Canadian Space Agency directly addresses that bearish thesis.
MDA Space will design, build and launch a next-generation synthetic aperture radar satellite to replenish the RADARSAT Constellation Mission. Using the proprietary MDA CHORUS commercial technology platform, this single agreement replenishes nearly 19% of the depleted first-quarter backlog. More importantly, the deal secures high-margin, multi-year revenue visibility through the end of the decade. That should help stabilize the core Canadian business while executives execute a broader international strategy.
Infiltrating the Pentagon: The Blue Canyon Catalyst
The real masterstroke of the current growth phase is the $620 million all-cash acquisition of Blue Canyon Technologies. On the surface, buying a spacecraft component manufacturer simply adds hardware capacity. The real strategic value lies in breaking through the invisible wall of sovereign defense contracting. The United States Department of Defense and the Space Development Agency have strict regulations on foreign ownership, control or influence. Historically, those rules kept international entities from bidding as prime contractors on lucrative, classified military programs.
By acquiring Blue Canyon Technologies, MDA Space gains two manufacturing facilities in the Denver, Colorado, aerospace hub, along with a workforce of more than 400 employees holding active security clearances. This localized footprint effectively helps bypass traditional regulatory barriers. Blue Canyon Technologies projects $160 million in revenue for 2026, with roughly 75% of those sales tied directly to defense contracts.
Instinctively, this acquisition adds a massive $3.5 billion addressable pipeline to target projections. MDA Space is no longer just a Canadian subcontractor. The company can now directly compete for prime, classified defense dollars south of the border. This coalition-level integration is already showing secondary benefits. Just days before the Blue Canyon Technologies announcement, wholly owned subsidiary 49North secured a C$3.7 million (approx. $2.6 million) contract with General Atomics to deliver a Coalition Shared Database for the Remotely Piloted Aircraft System program. The ability to seamlessly share, search and access heterogeneous sensor data across allied nations reinforces MDA Space as an indispensable, integrated NATO-standard defense partner.
Navigating the Gravity of Debt-Funded Acquisitions
Aggressive acquisitions inevitably raise questions about balance-sheet leverage, especially when funded entirely with senior secured debt. Using debt in a high-interest-rate environment can lead to severe margin compression if integration bottlenecks emerge. MDA Space ended the first quarter of 2026 with a pristine net cash position of C$299.3 million (approx. $213 million) and a net debt-to-adjusted EBITDA ratio of negative 0.9x. The Blue Canyon Technologies acquisition will push leverage closer to a target ceiling of 2.5x. Fortunately, credit agencies view the transaction favorably. Morningstar DBRS affirmed that the acquisition remains credit profile neutral and preserves a BB rating with a stable trend. The underlying cash generation of the combined businesses is expected to comfortably service the new debt while becoming accretive to adjusted EPS by 2027.
Investors tracking the tape likely noticed MDA Space stock fell in the days following the acquisition and contract announcements. A surface-level read might suggest the market dislikes the capital allocation. However, digging into the options chain and off-exchange data reveals a different picture. Total raw short interest remains exceptionally low at just 0.92% of the total float.
At the same time, 30-day options implied volatility rose to 63.31%, reaching the highest possible percentile for the current cycle. This combination suggests the recent price action is largely derivative-driven. Institutions are heavily using off-exchange shorting to hedge options portfolios and manage arbitrage around the merger event. That points to a classic price dip driven by news-cycle arbitrage rather than a structural, fundamental sell-off.
Securing a Payload Position Before the Re-Rating
The convergence of a replenished sovereign backlog and a newly unlocked defense pipeline paints a highly bullish picture. Bay Street analysts moved quickly to re-rate the stock, with firms like BMO Capital raising price targets to C$68 (approx. $48.50). The market is slowly recognizing that MDA Space has the localized assets, security clearances and proprietary technology to dominate cross-border space infrastructure.
For retail and institutional investors, the current valuation discount presents a clear arbitrage opportunity. Buying a high-margin, cash-flowing aerospace prime at a fraction of the multiple awarded to unproven space startups is a rare setup. As the Blue Canyon Technologies integration progresses and the massive $3.5 billion pipeline begins to convert into recognized revenue, the broader market will likely be forced to close that valuation gap. Adding exposure during this derivative-driven consolidation period aligns well with a long-term, fundamentally sound defense strategy. Investors may want to consider initiating a position in MDA Space while institutional hedging temporarily suppresses the underlying equity's value.
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