Dear Reader,
There's something different about a metal when militaries depend on it.
Not for hype.
Not for headlines.
But because modern defense systems literally require it.
Ammunition.
Missile guidance.
Night vision.
Flame-retardant materials in aircraft interiors.
When export restrictions tighten and supply concentrates overseas, governments start paying attention.
That's exactly what's happening now.
Why this North American explorer sits inside that supply gap:
- High-grade deposit in a friendly jurisdiction
- Just miles from the U.S. border
- Three active drill rigs expanding the zone
- Demand rising as defense budgets approach $1T
- N. America lacks meaningful production
But defense metals don't stay overlooked forever.
Governments don't just talk about supply security, they fund it.
Find the ticker before funding flows >
Devon Energy Bets on Scale With Coterra Acquisition
Written by Chris Markoch. Published: 2/15/2026.
Key Points
- Devon Energy’s all-stock merger with Coterra reflects accelerating consolidation across a maturing U.S. shale industry focused on efficiency over expansion.
- The combined company gains geographic diversification and scale, but investors are watching closely for dividend sustainability and potential EPS dilution.
- Analysts have responded positively, with price targets suggesting upside, though volatility may persist ahead of Devon’s upcoming earnings report.
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It was a buy-the-rumor, sell-the-news week for Devon Energy (NYSE: DVN). On Feb. 11, the company announced an all-stock merger with Coterra Energy (NYSE: CTRA) that, if approved by shareholders of both companies, would create a $58 billion energy giant.
DVN stock was up nearly 4% before the announcement but fell 2.2% on Feb. 12. Price action like that isn't uncommon; merger news attracts some investors while pushing others away.
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Adding to the volatility, Devon Energy is scheduled to report Q4 2025 earnings after the market close on Feb. 17.
Analysts and investors will be watching management's tone about the merger approval closely. One key area of interest will be the company's dividend.
Why Coterra? And Why Now?
Let's take those questions in reverse. The timing of the deal reflects ongoing consolidation in the oil and gas industry.
The U.S. shale industry has matured, so companies are prioritizing operational efficiency over simply drilling more wells—especially with demand expected to wane in 2026. The combined company would gain scale, diversification and greater resilience, which matters as the price of oil remains under pressure.
The merger also brings geographic diversification. Coterra primarily operates in the Marcellus Shale (northeast Pennsylvania), the Anadarko Basin (Oklahoma) and the Delaware Basin (southeast New Mexico and Texas). Devon is concentrated in the Delaware Basin, so the combination expands Devon's footprint and reduces its exposure to regional price swings.
All Eyes Will Be on the Dividend
Oil and gas stocks are among the most cyclical in the energy sector. That's why large-cap names, including Devon Energy, pay dividends—to return cash to shareholders in a sector that can be unforgiving.
DVN's dividend currently yields 2.18%, paid as 24 cents per share quarterly. Coterra's dividend yields 2.86%, or 22 cents per share quarterly. The companies have announced plans for a 31.5-cent per share dividend once the merger closes, a roughly 31% increase from Devon's current payout.
This is also why the merger being all-stock matters: it helps prevent the combined company from taking on heavy debt. That matters in an industry acutely affected by commodity prices—if oil and gas prices fall, a highly leveraged firm would be at greater risk.
The trade-off is a larger share count, which can dilute earnings per share (EPS). The combined company will need to generate enough cash flow to sustain—and ideally grow—its dividend.
Investors and Traders May See the Merger Differently
Income-focused, buy-and-hold investors will likely view the deal positively. The merger creates a larger, more resilient shale producer, and moving operations to Houston will deepen Devon's ties to a major energy hub.
Short-term traders or dividend investors who prioritize yield may prefer to wait for more certainty about the dividend's safety and growth prospects.
Analysts Are Signaling Approval
On the day of the announcement, Raymond James raised its price target on DVN to $52 from $44. Several other analysts already have targets of $50 or higher going back to the start of the year.
A move to $50 would be about 10% above the current consensus price and nearly 20% above the Feb. 12 close.
Activity will likely be volatile in the run-up to the company's earnings report. Investors on the sidelines may want to wait for the results before taking a position.
Cisco Systems Below $82? Buy Now, It Won't Last—$182 Is Coming
Written by Thomas Hughes. Published: 2/13/2026.
Key Points
- Cisco is well-positioned to benefit from a multi-year tech refresh cycle.
- AI underpins the need for newer, faster, more efficient networking and connectivity solutions.
- Analysts and institutions support this market: dividends, distribution growth, and buybacks attract buy-and-hold investors.
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It is a bold statement to say Cisco (NASDAQ: CSCO) stock will advance by $100 to $182, but there are forces at play and precedents that make it plausible. Cisco's share price crossed a significant threshold in early February, rising above the $82 level to set a fresh all-time high.
The all-time high is notable on its own; it is the stock's first since the DotCom bubble burst, marking a potential pivot point for the market. Other large-cap names — including Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Google (NASDAQ: GOOGL), and Oracle (NYSE: ORCL) — have crossed similar thresholds and subsequently advanced by modest-to-large triple-digit amounts.
A Cyclical Upswing and Capital Return Underpin CSCO Price Action
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Cisco's current driver is an AI-driven, multi-year tech refresh cycle. Existing data centers need modernization, new facilities are being built aggressively, and enterprise networking demand — which supports the Internet and global commerce — remains robust. The critical takeaway is that Cisco, as a leading provider, is well-entrenched in the marketplace and positioned to benefit from a tailwind expected to persist for many years.
Although the 20x earnings multiple at which the stock traded in mid-February is somewhat rich relative to recent years, it may still underprice Cisco's potential. More importantly, trading at only 14x the 2030 forecast suggests there is room for the stock to rise as earnings grow; a 50% increase over the coming years is conceivable if earnings outpace expectations.
Capital returns are also a driver of Cisco's stock. The company has been a high-quality dividend payer and share repurchaser — offering a market-beating yield, reliable payouts, and a declining share count prior to its Q2 release.
The dividend is well above average, yielding about 1.9% as of February, and appears safe at roughly 40% of this year's earnings guidance, which is at the low end of the company's targeted range.
Cisco is known for raising its dividend annually — a streak that has lasted 15 years — and is likely to continue that trend. On buybacks, Q2 2026 activity helped reduce the share count by about 0.5% year-to-date, and buybacks are expected to proceed at a similar pace through year-end. Current authorization suggests approximately 10 more quarters of repurchases at the Q2 rate.
Analysts Applaud Cisco's Q2 Results: Raise Targets, Lead Market
Cisco's Q2 results were solid, and analysts reacted favorably. The company reported 10% system-wide growth, generating $15.35 billion in revenue — about 150 basis points ahead of expectations — and delivered strong earnings. Revenue growth was driven by both product and services, with product revenue up 20%, supported by a 20% increase in networking.
All geographic regions showed strength, and margin trends were constructive. The company's increased spending on capex, innovation, and growth investments has pressured cash flow in the near term, but adjusted earnings grew at an accelerated 11% pace, beating estimates by 195 basis points and are expected to remain solid through year-end.
MarketBeat tracked several analyst updates immediately after the release, many of which reaffirmed or raised price targets. The new targets align with a consensus-or-better outcome, suggesting a minimum 20% upside is possible.
A move to new highs could open the door to much larger gains, potentially matching the magnitude of the long-dominant trading range over the past 26 years.
The roughly $70 historical range implies a move toward the $150 level is plausible over time.
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